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Overview of Overview of Kansas Wind EnergyKansas Wind Energy
LawLaw
Tom StrattonTom StrattonChief Litigation CounselChief Litigation CounselKansas Corporation Kansas Corporation CommissionCommission
Kansas Wind and Renewable Kansas Wind and Renewable Energy ConferenceEnergy ConferenceSeptember 24, 2008September 24, 2008
An Important Time…An Important Time…
This is an important time for development of energy policy and responsible utility This is an important time for development of energy policy and responsible utility regulation.regulation.
The KCC’s Mission is consistent with these goals.The KCC’s Mission is consistent with these goals.
Electric Utility Electric Utility JurisdictionJurisdiction
KCC Responsibilities and KCC Responsibilities and JurisdictionJurisdiction
The KCC has the responsibility of ensuring that The KCC has the responsibility of ensuring that electricity providers provide safe, adequate and electricity providers provide safe, adequate and reliable services at reasonable rates. reliable services at reasonable rates.
The KCC has jurisdiction over all investor-owned The KCC has jurisdiction over all investor-owned and some cooperative transmission, generation and some cooperative transmission, generation and distribution electric public utilities and over and distribution electric public utilities and over municipal electric utilities within certain municipal electric utilities within certain parameters. parameters.
The KCC’s regulation extends to such areas as The KCC’s regulation extends to such areas as rates, fees, charges, services, acts, practices, rates, fees, charges, services, acts, practices, rules and regulations. rules and regulations.
Overview of Kansas Overview of Kansas Statutes important to Statutes important to
wind generation or wind generation or transmissiontransmission
K.S.A. 66-104: This statute defines a K.S.A. 66-104: This statute defines a “public utility” subject to the “public utility” subject to the Commission’s jurisdiction. Subsection Commission’s jurisdiction. Subsection (e) gives the (e) gives the optionoption to be governed by to be governed by the KCC. the KCC.
Given the option under K.S.A. 66-104(e), Given the option under K.S.A. 66-104(e), why wouldn’t a utility opt of jurisdiction?why wouldn’t a utility opt of jurisdiction?
Overview of Kansas Overview of Kansas Statutes important to wind Statutes important to wind
generation or generation or transmission, continuedtransmission, continued
K.S.A. 66-128: Construction Work in K.S.A. 66-128: Construction Work in Progress Progress
K.S.A. 66-1,184: The Kansas Parallel K.S.A. 66-1,184: The Kansas Parallel Electric Generation Services Act authorizes Electric Generation Services Act authorizes interconnection of wind generation and interconnection of wind generation and creates an obligation on the part of the creates an obligation on the part of the electric utility to pay no less than 150% of electric utility to pay no less than 150% of the utility’s monthly system average cost the utility’s monthly system average cost of energy per kWh to customers with of energy per kWh to customers with excess energy to sell.excess energy to sell.
Other Kansas Statutory Other Kansas Statutory ProvisionsProvisions
K.S.A. 66-1,184a: Off-system sales of K.S.A. 66-1,184a: Off-system sales of wind generation. wind generation.
K.S.A. 66-1243: Interconnection K.S.A. 66-1243: Interconnection Authorization Authorization
K.S.A. 66-1244: KCC review of sales K.S.A. 66-1244: KCC review of sales of transmission and contracts for of transmission and contracts for operation of transmission by operation of transmission by approved companies and operators.approved companies and operators.
Other Kansas Statutory Other Kansas Statutory Provisions, ContinuedProvisions, Continued
K.S.A. 66-1247: Recovery of all costs K.S.A. 66-1247: Recovery of all costs from benefiting utilities when electric from benefiting utilities when electric transmission lines are constructed or transmission lines are constructed or upgraded.upgraded.
K.S.A. 12-895: Allows for creation of K.S.A. 12-895: Allows for creation of Municipal Energy Agencies.Municipal Energy Agencies.
K.S.A. 58-2272: Information required K.S.A. 58-2272: Information required to be included in conveyances of to be included in conveyances of interests involving wind resources interests involving wind resources and technologies. and technologies.
Tax Exemptions and Tax Exemptions and Credits under Kansas Credits under Kansas
StatutesStatutes Kansas Property Tax Exemption [K.S.A. 79-Kansas Property Tax Exemption [K.S.A. 79-
201, 201, EleventhEleventh]. ]. Kansas Sales Tax Exemption [K.S.A. 79-Kansas Sales Tax Exemption [K.S.A. 79-
3606(cc)] 3606(cc)] Kansas Job Creation Tax Credit [K.S.A. 79-Kansas Job Creation Tax Credit [K.S.A. 79-
32,160a] 32,160a] A group of Kansas laws were amended in A group of Kansas laws were amended in
2003 to allow the formation of renewable 2003 to allow the formation of renewable energy co-ops consisting of five or more energy co-ops consisting of five or more persons that produce at least 100 kilowatts persons that produce at least 100 kilowatts (kW) of energy (includes many but not all of (kW) of energy (includes many but not all of the following: K.S.A. 17-4655 through 17-the following: K.S.A. 17-4655 through 17-4681). 4681).
Regulation of Land UseRegulation of Land Use
The authority to regulate land use in The authority to regulate land use in Kansas is under the purview of local Kansas is under the purview of local governments through the state’s governments through the state’s planning and zoning statutes. (K.S.A. planning and zoning statutes. (K.S.A. 12-741 et seq.)12-741 et seq.)
Relevant Commission Relevant Commission DocketsDockets
The following dockets may be found at The following dockets may be found at http://kcc.ks.gov/docket/docket.htmhttp://kcc.ks.gov/docket/docket.htm..
04-GIME-080-GIE: 04-GIME-080-GIE: In the Matter of a General Investigation to EstabliIn the Matter of a General Investigation to Establish Standard Procedures and Agreements for Intersh Standard Procedures and Agreements for Interconnection Between Electric Public Utilities and Pconnection Between Electric Public Utilities and Parallel Generation Facilities.arallel Generation Facilities.
07-GIME-104-GIV07-GIME-104-GIV: : In the Matter of the General Investigation InitiatedIn the Matter of the General Investigation Initiated for the Purpose of Complying with Section 1254 o for the Purpose of Complying with Section 1254 of the Energy Policy Act of 2005 Related to Intercof the Energy Policy Act of 2005 Related to Interconnection of Customer Generationnnection of Customer Generation..
Relevant Commission Relevant Commission Dockets, ContinuedDockets, Continued
08-WSEE-309-PRE08-WSEE-309-PRE: : In the Matter of the Petition of (CollectivelyIn the Matter of the Petition of (Collectively " "WestarWestar") for Determination of the Ratemaking Pri") for Determination of the Ratemaking Principles and Treatment that Will Apply…for nciples and Treatment that Will Apply…for Certain Electric Generation Facilities and PCertain Electric Generation Facilities and Power Purchase Agreements Under K.S.A. 2ower Purchase Agreements Under K.S.A. 2003 Supp. 66-1239.003 Supp. 66-1239.
FERC/SPPFERC/SPP
Electricity Electricity TransmissionTransmission
CongestionCongestion
Federal Energy Regulatory Federal Energy Regulatory Commission (FERC) and Commission (FERC) and Southwest Power Pool Southwest Power Pool
(SPP)(SPP) Congress enabled FERC to regulate Congress enabled FERC to regulate
wholesale electricity marketswholesale electricity markets
The States and Regional The States and Regional Transmission Organizations (RTOs) Transmission Organizations (RTOs) plan transmission, subject to the plan transmission, subject to the ability of FERC to act where it deems ability of FERC to act where it deems states to have failed.states to have failed.
FERC and SPP, ContinuedFERC and SPP, Continued The KCC actively participates in the The KCC actively participates in the
monitoring and regulation of wholesale monitoring and regulation of wholesale electricity markets, through filings at FERC electricity markets, through filings at FERC and participation at the SPP.and participation at the SPP.
Most Kansas utilities, with the KCC’s Most Kansas utilities, with the KCC’s approval, have turned over operational approval, have turned over operational control of their transmission systems to SPP. control of their transmission systems to SPP.
The KCC has also approved SPP’s The KCC has also approved SPP’s application to act as a public utility for the application to act as a public utility for the limited purpose of managing and limited purpose of managing and coordinating certain transmission facilities coordinating certain transmission facilities in Kansas. in Kansas.
FERC and SPP, ContinuedFERC and SPP, Continued
Commissioner Moffet actively serves Commissioner Moffet actively serves on SPP’s Regional State Committee. on SPP’s Regional State Committee.
Pursuant to K.S.A. 74-633, Pursuant to K.S.A. 74-633, Commissioner Moffet is authorized to Commissioner Moffet is authorized to participate fully in SPP decision-participate fully in SPP decision-making.making.
Some Helpful ResourcesSome Helpful Resources
Kansas Energy Plan 2007Kansas Energy Plan 2007, Kansas Energy Council, January 2007. , Kansas Energy Council, January 2007. http://http://www.kec.kansas.gov/energy_plan/energy_plan.pdfwww.kec.kansas.gov/energy_plan/energy_plan.pdf
Wind Energy Siting Handbook: Guideline Options for Kansas Cities Wind Energy Siting Handbook: Guideline Options for Kansas Cities and Counties, Kansas Energy Council, April, 2005. and Counties, Kansas Energy Council, April, 2005. http://http://www.kec.kansas.gov/reports/wind_siting_handbook.pdfwww.kec.kansas.gov/reports/wind_siting_handbook.pdf
Wind and Prairie Task Force Final ReportWind and Prairie Task Force Final Report, (Kansas Geological , (Kansas Geological SurveySurvey
Open-file Report 2004-29) June 7, 2004. See in particular Open-file Report 2004-29) June 7, 2004. See in particular Appendix 6—Wind and Prairie Task Force Guidelines for Kansas Appendix 6—Wind and Prairie Task Force Guidelines for Kansas Landowners in Creating and Negotiating Equitable Wind Energy Landowners in Creating and Negotiating Equitable Wind Energy Leases.Leases.
http://http://kec.kansas.gov/wptf/WPTFFinalReport.pdfkec.kansas.gov/wptf/WPTFFinalReport.pdf Community Wind Financing; A Handbook by the Environmental Community Wind Financing; A Handbook by the Environmental
Law & Policy CenterLaw & Policy Center, Kubert, Charles, et. al. (2004). “, Kubert, Charles, et. al. (2004). “This This guidebook was created by Charles Kubert for the Environmental guidebook was created by Charles Kubert for the Environmental Law and Policy Center in 2004. It talks about business models, Law and Policy Center in 2004. It talks about business models, sources of equity, grant and loan programs, incentives, and power sources of equity, grant and loan programs, incentives, and power purchase agreements for community wind projects.” purchase agreements for community wind projects.” (windustry.org)(windustry.org)
Some Helpful ResourcesSome Helpful Resources http://www.elpc.org/documents/WindHandbook2004.pdfhttp://www.elpc.org/documents/WindHandbook2004.pdf The Law of Wind: A Guide to Business and Legal IssuesThe Law of Wind: A Guide to Business and Legal Issues, Stoel , Stoel
Rives LLP, Third Edition (2007)Rives LLP, Third Edition (2007) http://www.stoel.com/webfiles/LawOfWind_WEB_05_07.pdfhttp://www.stoel.com/webfiles/LawOfWind_WEB_05_07.pdf Wind Power: A Lawyer's Guide to Representing LandownersWind Power: A Lawyer's Guide to Representing Landowners , ,
Ostrander, Mustafa P., Business Law Today, Vol 16, No. 6 Ostrander, Mustafa P., Business Law Today, Vol 16, No. 6 (July/August 2007) (July/August 2007)
By Mustafa P. Ostrander By Mustafa P. Ostrander http://www.abanet.org/buslaw/blt/2007-07-08/ostrander.shtmlhttp://www.abanet.org/buslaw/blt/2007-07-08/ostrander.shtml Wind Power: Generating Electricity and LawsuitsWind Power: Generating Electricity and Lawsuits, Brown, Brit , Brown, Brit
T. and Escobar, Benjamin A., Energy Bar Journal, Vol 28, No. 2 T. and Escobar, Benjamin A., Energy Bar Journal, Vol 28, No. 2 (2007). (2007).
http://www.eba-net.org/docs/elj282/Wind_Power.pdfhttp://www.eba-net.org/docs/elj282/Wind_Power.pdf Sample Wind Farm Lease Option Agreement: Sample Wind Farm Lease Option Agreement:
http://www.horizonwind.com/projects/whatweredoing/topcrophttp://www.horizonwind.com/projects/whatweredoing/topcrop/documents//documents/27LivingstonSUPAppendix9LandOwnersandOA.pdf27LivingstonSUPAppendix9LandOwnersandOA.pdf
Contact InformationContact InformationTom StrattonTom Stratton
Kansas Corporation CommissionKansas Corporation Commission
1500 SW Arrowhead Road, Topeka, KS 66604-40211500 SW Arrowhead Road, Topeka, KS 66604-4021
[email protected]@kcc.ks.govFor copies of the text accompanying this presentation, For copies of the text accompanying this presentation, please contact Gail Alderson:please contact Gail Alderson: [email protected]@kcc.ks.gov
