Bill
HB 2041
Requires competitive bidding for electric transmission projects whose costs are recovered through an RTO before KCC siting permits, ensuring open bids and lowest reasonable bid.
Status
- Introduced January 23, 2025.
- Referred to the House Committee on Energy, Utilities and Telecommunications.
- Fiscal note issued February 7, 2025.
Purpose and intent
- To require that electric transmission projects whose costs will be recovered through a regional transmission organization (RTO) be subject to a documented competitive bidding process before the Kansas Corporation Commission (KCC) may issue a siting permit. The bill is intended to ensure bids are open and fair and that the selected bid is the lowest reasonable bid.
Key provisions
- Amends K.S.A. 66-1,178 and 66-1,180 (and repeals the prior versions).
- Application requirements (K.S.A. 66-1,178): An electric utility seeking a siting permit must include:
- Proposed route/location and affected landowner information;
- For transmission lines with costs recovered through an RTO, evidence that the project was competitively bid among qualified bidders, that the bidding process was open and fair, and whether the utility was the lowest reasonable bid.
- Commission review and conditions (K.S.A. 66-1,180):
- The KCC may not issue a permit for an RTO-recovered project unless it issues an order finding the competitive bid process occurred, was open and fair, and whether the lowest reasonable bid was selected.
- The KCC must consider benefits to both in-state and out-of-state consumers and Kansas economic development when evaluating necessity and location.
- Procedural deadlines:
- A public hearing must be set no more than 90 days after application filing.
- Hearings are to be completed within 30 days of commencement unless continued.
- The KCC must issue a final order within 120 days after filing.
- Hearing costs are taxed to the applicant utility.
- Effective date: upon publication in the statute book.
Who is affected
- Electric public utilities proposing transmission lines with costs recovered through an RTO (e.g., projects that participate in regional cost allocation).
- Kansas Corporation Commission (administration, review, and enforcement).
- Potential bidders/contractors and regional transmission stakeholders.
- Ratepayers indirectly, because bidding and review requirements may affect project costs, procurement choices, and project timing. Counties reported no fiscal impact.
Fiscal impact (from Fiscal Note)
- KCC estimates increased expenditures of $1.0 million from agency fee funds across FY 2026 and FY 2027 (assumes two bidding projects per fiscal year at ~$500,000 per project for consultant/contracting costs).
- Long-term fiscal effects depend on the number of permit applications and workload.
Implications and likely effects
- Adds a statutory procurement review step to KCC permitting for RTO-costed projects; could increase administrative and consultant work at the KCC and may lengthen or alter project procurement timelines.
- May change utility procurement practices for transmission projects recovered via RTO cost allocation by requiring documented, competitive processes.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
