Kansas Senate Bill SB81

Kansas 2025-2026 Regular Session

• Introduced: 1/27/25
• Refer: 1/28/25

Caption

Prohibiting large facilities receiving certain tariffs or failing to meet workforce and electric demand requirements from qualifying for economic development electric rates.

Summary

SB 81 revises Kansas law governing economic development electric rates offered by electric public utilities. The bill keeps the basic program that allows discounted electric rates for new or expanded industrial and commercial facilities that bring economic development incentives and meet certain load and service requirements, but it tightens eligibility rules for larger facilities. In particular, it adds a prohibition on new facilities projected to reach 40 megawatts or more within two years if they also are projected to have fewer than 200 full-time employees, unless they are served under a data center or large load tariff. The bill also preserves and refines the existing tiered discount structure for qualifying facilities, including different maximum discount levels and durations depending on projected peak demand and load factor. It limits the ability of utilities to offer these discounted rates for the largest qualifying facilities after December 31, 2030, unless the Kansas Corporation Commission approves an extension through 2036. The bill requires the commission to continue providing biennial reports to the Legislature on the number of discounted-rate customers, load changes, subsidy amounts, rate impacts on other customers, and estimated economic development outcomes such as jobs and tax revenue.

Impact

SB 81 amends K.S.A. 2024 Supp. 66-101j and repeals the existing version of that statute. Its practical effect is to narrow access to economic development electric rate discounts for very large-load facilities, especially those with high projected demand but relatively small workforces, while leaving the broader discount program in place for other qualifying industrial and commercial customers. It also affects how utilities and the Kansas Corporation Commission account for revenue impacts from these discounts, including treatment of certain deferred revenue and reporting obligations to the Legislature.

Sentiment

The bill appears generally supportive of economic development incentives while reflecting concern about the size and structure of discounts granted to large-load customers. The text suggests a policy preference for tying utility rate discounts more closely to job creation, capital investment, and broader public benefit. No committee transcripts or recorded votes were provided, so there is no direct evidence of debate tone or formal support/opposition in the available materials.

Contention

The main point of contention implied by the bill is whether large facilities, especially data centers or other high-demand users, should qualify for subsidized electric rates when they do not produce substantial full-time employment. Another likely issue is the cost shift to other customer classes, since the bill continues reporting on subsidy levels and rate impacts and addresses how deferred revenue from discounts is recovered in rate proceedings. Utilities, economic development advocates, large industrial users, and consumer or ratepayer interests would be the most likely stakeholders on opposite sides of these questions.