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HB 2149

Substitute for HB 2149 by Committee on Energy, Utilities and Telecommunications - Requiring distributed energy retailers to disclose certain information to residential customers who are offered or seeking to install a distributed energy system, requiring the attorney general to convene an advisory group to develop, approve and periodically revise a standard form for such disclosures and requiring publication thereof, establishing requirements for interconnection and operation of distributed energy systems, increasing the total capacity limitation for an electric public utility's provision of parallel generation service and a formula to determine appropriate system size.

2025-2026 Regular Session

HB 2149 standardizes consumer protections for residential distributed-energy contracts in Kansas, mandating disclosures, interconnection rules, and clearer compensation pathways.

Law effective May 1, 2025
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Bill Summary · HB 2149

Summary — HB 2149 (Enrolled and Approved Apr 7, 2025)

Purpose

HB 2149 creates consumer-protection requirements for residential distributed-energy transactions and updates Kansas law governing interconnection, parallel generation (net metering-like) arrangements, and compensation rules. It requires standardized disclosures by distributed energy retailers, sets interconnection/operation rules, increases statutory limits on utility-provided parallel generation capacity, and establishes customer repair/notification rights.

Key definitions

  • “Distributed energy customer”: owner of a single‑family dwelling or multi‑family dwelling of two units or fewer offered a distributed energy contract.
  • “Distributed energy retailer”: any person/entity that sells, markets, finances, installs or otherwise offers distributed energy systems in Kansas.
  • “Distributed energy system”: devices (e.g., residential solar, storage, management) capable of exporting excess power to the utility and subject to a state agreement or voluntary net‑metering tariff.
  • “Permission to operate”: as defined in existing law.

Major provisions

  • Retailer registration: Retailers must be registered with the Secretary of State and authorized to do business in Kansas.
  • Mandatory pre‑contract disclosure: Retailers must deliver a separate disclosure (minimum 10‑point font, in customer’s language) that includes:
    • Make/model and expected useful life of major components;
    • A measurable energy‑generation guarantee and remedy if unmet within one year after permission to operate;
    • Total aggregate contract cost (bolded) and separate written acknowledgement;
    • Ownership/transferability of tax credits, incentives, RECs;
    • Installer/overseer certification or license numbers;
    • Contact info for performance/repair questions;
    • Assumptions behind savings estimates and applicable utility billing structure (must follow an AG standard form);
    • Proof within 30 days after installation of permits, inspection, interconnection submission/approval and permission to operate;
    • Statement pausing recurring payments if permission to operate is not received within 90 days of first payment due (payments during pause forgiven or added to end of term without penalty).
    • Statements on rate escalation, balloon payments, transferability of warranties, liens, expected start/completion dates, and whether O&M or removal/reinstallation costs are included.
  • Attorney General standard form: AG to convene an advisory group to develop, approve, publish and periodically revise a standard disclosure form.
  • Utility/retailer data sharing: Utilities must disclose certain information to retailers (e.g., consumption data) to help size systems and process interconnections; the bill also creates an interconnection application process and a nonrefundable application fee.
  • Parallel generation & net metering changes:
    • Removes certain renewable generator capacity limits (statutory limit removed/increased);
    • Permits use of locational marginal pricing (LMP) as a compensation mechanism where applicable;
    • Establishes a statutory formula/criteria to determine appropriate system size tied to customer load and distribution/system constraints.
  • Customer rights and notifications: Establishes right‑to‑repair provisions and requires notifications when a system stops producing, is abandoned, or when the customer seeks repair/rebuild.
  • Misc.: Provisions on assignment of maintenance obligations, transfer of financing/warranties, and procedural obligations for cancellations/modifications.

Who is affected

  • Residential property owners (single‑family and up to two‑unit multi‑family) who enter distributed energy contracts.
  • Distributed energy retailers and installers operating in Kansas.
  • Electric utilities (investor‑owned, cooperatives, municipally owned) — regarding interconnection, data sharing, tariffs, and parallel generation obligations.
  • State agencies (Attorney General, Secretary of State), Kansas Corporation Commission (KCC), and Citizens’ Utility Ratepayer Board (CURB) for implementation/oversight.

Fiscal and procedural notes

  • Introduced: Jan 28, 2025. Approved by Governor: Apr 7, 2025 (enrolled).
  • Fiscal note: CURB and KCC reported no immediate fiscal impact; potential future utility tariff dockets could require CURB intervention within existing resources. Municipalities/counties might experience fiscal effects if acting as retailers, but impacts were not estimated.

Practical effect

The law standardizes disclosures and consumer protections for residential distributed energy purchases, clarifies interconnection and compensation pathways (including LMP), allows larger aggregated parallel generation capacity, and gives customers clearer payment protections and repair rights — while requiring coordination between retailers, utilities, and the Attorney General’s advisory process for the standardized disclosure form.

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

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