KS SB289

Amends K.S.A. 66-101j to require that economic development electric rate discounts authorized by the Kansas Corporation Commission must be sufficient to cover the incremental and variable costs to serve the customer receiving the discount, effective July 1, 2025

New cost-coverage requirement applies only to discounted rates implemented on or after July 1, 2025; existing discounted rate agreements implemented before that date are not affected

Economic development rate discounts remain available to new or expanded industrial/commercial facilities with peak demands of at least 200 kilowatts, 300 kilowatts, or 25 megawatts, with discount periods of up to 5 years or 10 years depending on facility size

Discount percentages range from 5-30% (averaging up to 20%) for smaller facilities to 20-50% (averaging up to 40%) for larger facilities, with the 10-year discount period split into two phases with different rate caps

The bill aims to protect non-discounted ratepayers by ensuring that customers receiving economic development discounts pay at least the utility's variable costs to serve them