Kansas is undergoing an energy transformation that will impact the future of energy rates and policies. The Supreme Court is reviewing a case that will significantly impact solar users in Kansas and the recently released Electricity Rates Study calls for a Statewide Energy Plan and Integrated Resource Plans to determine how to best integrate clean energy in Kansas. These are historic times for renewables in Kansas. The Climate + Energy Project strives to keep you informed of pressing energy concerns in Kansas. Read on for a full summary of the Supreme Court arguments and links to the proceedings.
On Dec. 19th, 2019, the Kansas Supreme Court heard arguments to determine if Westar’s rate design for distributed generation discriminates against renewable energy users (rooftop solar customers) in violation of both Kansas state law and federal law. Sierra Club and Vote Solar’s petition can be reviewed here, and you can watch the oral arguments on Youtube.
Several decades ago, the Kansas Legislature adopted legislation that prohibits rate discrimination to customers utilizing renewable energy sources (KSA 66-117). This law provides rather broad protection to renewable energy users (i.e. homeowners with solar) and goes so far as to say that they are protected from any “prejudice or disadvantage on account of the use of any such renewable energy sources.” Here is a quick background on the laws in question by Andy Rondon from Good Energy Solutions.
More recently, in 2014, the Kansas Legislature passed legislation that allows solar customers to be put into a separate rate class and charged differently than non-solar customers (KSA 66-1265). This 2014 legislation is what allowed Westar’s Rate case in 2018 that ultimately led to today, where residential solar customers are subject to the demand charge rate (RS-DG). The 2014 law (KSA 66-1265e) allows for “time-of-use rates, minimum bills, or other rate structures”. While the RS-DG rate includes a time-of-use aspect, RS-DG falls under “other rate structures”. In the utility sector, the phrase “time-of-use” typically refers to energy charges, not demand charges.
The Supreme Court Justices asked several questions of each of the attorneys to further their understanding of the rate charges. They sought clarity on why only solar customers are being charged the new 3-part rate structure, which evidence shows increases the charges for this subset of customers over traditional customers. They wanted to know how the unpredictability of a solar customer differs from that of a customer who simply uses less energy, and how sporadic usage of energy impacts the grid. The discussion included different types of rate structures and reasons for not using them, especially around fixed charges. They also asked outright whether the demand charges disincentivize solar.
Justice Dan Biles offered an analogy that was used repeatedly during the proceeding to exemplify how the rate structure appears unfair. The analogy goes like this:
You have three customers with three different cars and a gas station. The first customer is Aunt Martha who drives a Cutlass and only visits the gas station once per month. The second is an SUV driver who frequents the station, and the third is a Prius driver who only fuels up once per week. In this analogy, as compared to the utility company, you are charging the Prius driver more to make up the company’s fixed charges left unpaid by aunt Martha because she’s only using the station once a month. In other words you’re forcing the Prius driver to subsidize aunt Martha. This analogy can be heard at the 32.34 marker of the archive.
The proceeding was covered by 13 WIBW.
Photo caption: Solar Supporters at the Supreme Court.
Thanks to everyone who attended the hearing in support of fair rates for solar users. Watch for updates from CEP on the progress of this case, although there is no established timeline on the supreme court ruling.Support Solar in Kansas
As always, the Climate + Energy Project will keep you informed on policies impacting solar, including a legislative preview and opportunities to advocate for solar this legislative session. Please sign up to attend our WEALTH Day of Advocacy and Education at the Capitol, on Monday, Feb. 10th. Learn more about this important event and register here.
Photo caption: Solar Rally at last year’s WEALTH Day.
