66-128c. Valuation of property for rate making; evaluation of efficiency or prudence of utility; exclusion of all or a portion of costs of excess capacity, when; "excess capacity" defined; exclusion o - Kansas Statutes

66-128c

Chapter 66.--PUBLIC UTILITIES Article 1.--POWERS OF STATE CORPORATION COMMISSION

      66-128c.   Valuation of property for rate making; evaluation ofefficiency or prudence of utility; exclusion of all or a portion of costsof excess capacity, when; "excess capacity" defined; exclusion or reductionof return on costs from excess capacity.The state corporation commission, in determining thereasonable value of property under K.S.A. 66-128, and amendments thereto,shall have the power to evaluate the efficiency or prudence ofacquisition, construction or operating practices of that utility. In theevent the state corporation commission determines that a portion of thecosts of acquisition, construction or operation were incurred due in wholeor in part to a lack of efficiency or prudence, or were incurred in theacquisition or construction of excess capacity, it shall have the powerand authority to exclude all or a portion of those costs from the revenuerequested by the utility.

      For the purpose of this act, "excess capacity" means any capacity in excessof the amount used and required to be used to provide adequate and reliableservice to the public within the state of Kansas as determinedby the commission. The commission may in its discretion prohibit or reducethe return on costs which were incurred in constructing, maintaining oroperating excess capacity.

      History:   L. 1984, ch. 247, § 4; April 19.