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SB 348

Exempting any electric public utility that is a not-for-profit wholly owned subsidiary of an electric cooperative public utility from the jurisdiction of the state corporation commission.

2025-2026 Regular Session

Kansas removes state utility regulation for not-for-profit subsidiaries wholly owned by electric cooperatives, eliminating independent rate and service oversight for these entities.

Approved by Governor on Thursday, March 12, 2026
#corporationcommission #state #utilities
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Bill Summary · SB 348

Legislative bill overview

SB 348 exempts not-for-profit electric subsidiaries owned entirely by electric cooperatives from regulation by Kansas's State Corporation Commission (the agency that oversees utility rates, service standards, and consumer protections). The bill passed unanimously in the Kansas Senate on February 5, 2026, with amendments.

Why is this important

Electric cooperatives are member-owned utilities that currently operate under lighter regulatory oversight than investor-owned utilities. This bill extends that exemption to their wholly-owned subsidiaries, potentially allowing these entities to operate without state-level rate review, service quality oversight, or standard consumer protection mechanisms. This affects both the cooperatives' operational flexibility and consumer safeguards in areas they serve.

Potential points of contention

  • Consumer protection gap: Removing state oversight eliminates independent review of rates, billing practices, and service reliability standards that the Corporation Commission typically enforces for other utilities
  • Scope ambiguity: "Wholly owned subsidiary" could encompass various corporate structures; unclear whether this applies only to generation/transmission companies or extends to retail service operations affecting end consumers
  • Accountability questions: Not-for-profit status doesn't guarantee consumer-friendly practices; cooperative governance may not adequately represent all affected members, particularly in newly acquired service territories

Compiled from official sources — confirm details with the bill’s official record.

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