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  REVISOR of STATUTES

  

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66-101b. Electric public utilities; efficient and sufficient service; just and reasonable rates. Every electric public utility governed by this act shall be required to furnish reasonably efficient and sufficient service and facilities for the use of any and all products or services rendered, furnished, supplied or produced by such electric public utility, to establish just and reasonable rates, charges and exactions and to make just and reasonable rules, classifications and regulations. Every unjust or unreasonably discriminatory or unduly preferential rule, regulation, classification, rate, charge or exaction is prohibited and is unlawful and void. The commission shall have the power, after notice and hearing in accordance with the provisions of the Kansas administrative procedure act, to require all electric public utilities governed by this act to establish and maintain just and reasonable rates when the same are reasonably necessary in order to maintain reasonably sufficient and efficient service from such electric public utilities.

History: L. 1911, ch. 238, § 10; R.S. 1923, 66-107; L. 1985, ch. 225, § 13; L. 1988, ch. 356, § 219; L. 1995, ch. 10, § 1; July 1.

Law Review and Bar Journal References:

Regulation of just and reasonable rates discussed in "Corporation Commission Practice," John E. Davis, 37 J.B.A.K. 87 (1968).

Public utility late charges, 26 K.L.R. 595 (1978).

"Allocating the Cost of Constructing Excess Capacity: Who Will Have to Pay for It All?" Robert L. Glicksman, 33 K.L.R. 429, 431 (1985).

"Wolf Creek and The Rate-Making Process," Brian J. Moline, 33 K.L.R. 509 (1985).

"Comments on the Proposed Kansas Groundwater Conservation Act from the Electric Utility Industry Viewpoint," L. Earl Watkins, Jr., 35 K.L.R. 395, 396 (1987).

"Retail Electric Competition in Kansas: A Utility Perspective," Sonnet C. Edmonds, 37 W.L.J. 603 (1998).

Attorney General's Opinions:

Public utilities; powers of KCC over municipal franchises and ordinances. 84-54.

Public utilities; rate making; legislative discretion. 94-76.

KCC; powers; rules and regulations; gas or electric public utilities; nonregulated private enterprises. 95-65.

Electric public utilities; legislative intervention into private utility contracts; authority of corporation commission. 97-47.

CASE ANNOTATIONS

1. Act requires each utility to establish just and reasonable rates. City of Emporia v. Telephone Co., 90 K. 118, 126, 133 P. 858.

2. Railroad entitled to fair profit on each commodity transported; "reasonable" rates considered; "unreasonable, unjust, oppressive and unlawful" not synonymous with "confiscatory." Railroad Co. v. Utilities Commission, 95 K. 604, 611, 148 P. 667.

3. Power to regulate and control location of telegraph stations; may require reasonably efficient and sufficient service. The State, ex rel., v. Postal Telegraph Co., 96 K. 298, 301, 304, 150 P. 544.

4. Privilege of unloading en route, etc.; contract preferential and discriminatory. Mollohan v. Railway Co., 97 K. 51, 55, 154 P. 248.

5. Discrimination and preferences in rates forbidden by utilities act. Milling Co. v. Postal Telegraph Co., 101 K. 307, 309, 166 P. 493.

6. Electric franchise expired; removal of poles and wires; commission's consent. City of Wilson v. Electric Light Co., 101 K. 425, 427, 166 P. 512.

7. Commission empowered to require reasonable, efficient and sufficient service. City of Parsons v. Water Supply and Power Co., 104 K. 294, 299, 178 P. 438.

8. Authority of commission over past overcharges considered. Great Western Portland Cement Co. v. Public Service Comm., 121 K. 531, 534, 247 P. 881.

9. Courts may enjoin noncompensatory or excessive rates. City of Hutchinson v. Hutchinson Gas Co., 125 K. 346, 355, 264 P. 68.

10. Voluntary rates established by railroad proper basis for fixing reasonable rates. Thompson v. State Corporation Commission, 173 K. 357, 362, 246 P.2d 257.

11. Commission cannot by approval limit liability of telegraph company for error in intrastate message. McNally Pittsburg Mfg. Corp. v. Western Union Telegraph Co., 186 K. 709, 713, 717, 353 P.2d 199.

12. Commission's order authorizing railroad to dualize station agencies held lawful and reasonable. Community of Woodston v. State Corporation Comm., 186 K. 747, 752, 353 P.2d 206.

13. Action to recover intrastate railroad-car rental charges; charges legal under commission's order. Keeler Co. v. Atchison, T. & S. F. Rly. Co., 187 K. 125, 128, 354 P.2d 368.

14. Invalid preliminary orders of commission cannot be enjoined. State Corporation Comm. v. Wichita Gas Co., 290 U.S. 561, 54 S.Ct. 321, 322, 324, 78 L.Ed. 500.

15. Corporation commission may order reinstatement of services in future if changed conditions require it. Missouri Pacific Rld. Co. v. State Corporation Commission, 192 K. 575, 580, 389 P.2d 813.

16. Application to replace railway station agency by establishment of mobile agency routes denied. Missouri Pacific Rld. Co. v. State Corporation Commission, 205 K. 610, 625, 470 P.2d 767.

17. Limitation of liability to customers provision by telephone company held reasonable; liability arises only for willful and wanton conduct. Holman v. Southwestern Bell Telephone Company, 358 F.Supp. 727, 728.

18. Mentioned; class action against gas utility contesting legality of late charge assessments made by utility. Tennyson v. Gas Service Company, 367 F.Supp. 102, 103.

19. Customers of utility companies had remedy in state courts and could not bring action in federal court; action challenging legality of late assessment charges. Tennyson v. Gas Service Co., 506 F.2d 1135, 1136.

20. Commission findings supported by evidence; court could not substitute its judgment for that of commission on appeal. Kansas-Nebraska Natural Gas Co. v. State Corporation Commission, 217 K. 604, 615, 538 P.2d 702.

21. Action under antitrust laws for damages and injunctive relief; compliance with section noted; under facts, doctrine of primary jurisdiction not applicable; jurisdictional appeal. Litton Systems, Inc. v. Southwestern Bell Tel. Co., 539 F.2d 418, 419.

22. Rates established not unreasonable except as to the imposition of a uniform late penalty. Jones v. Kansas Gas and Electric Co., 222 K. 390, 392, 399, 565 P.2d 597.

23. Cited; subsequent order fixing future effective date for a previously authorized rate increase found reasonable and lawful. Sunflower Pipeline Co. v. Kansas Corporation Commission, 3 K.A.2d 683, 685, 600 P.2d 794.

24. Presumption of reasonableness under 66-115 does not mean rates cannot be changed unless costs change; other factors may warrant change. Midwest Gas Users Ass'n v. Kansas Corporation Commission, 5 K.A.2d 653, 659, 661, 663, 623 P.2d 924.

25. Utility required to establish just and reasonable rates. Sunflower Pipeline Co. v. Kansas Corporation Commission, 5 K.A.2d 715, 718, 624 P.2d 466.

26. Rate established by commission was not unlawful and unreasonable; commission did not have to establish "lifeline rate." Ash Grove Cement Co. v. Kansas Corporation Commission, 8 K.A.2d 128, 129, 650 P.2d 747 (1982).

27. Rates exacted by public utility must be just and reasonable, not unreasonably discriminatory or unduly preferential. Southwestern Bell Tel. Co. v. Kansas Corporation Commission, 233 K. 375, 377, 664 P.2d 798 (1983).

28. Legislative grant of authority to KCC includes control over rates and tariffs. In re Application of Southwestern Bell Tel. Co., 9 K.A.2d 525, 533, 534, 685 P.2d 304 (1984).

29. Ordinary negligence standard of care applied to wrongful termination of service. DeGraeve v. Southwestern Bell Tel. Co., 9 K.A.2d 753, 755, 687 P.2d 1380 (1984).

30. Cited; power and authority of KCC to fix public utility rates analyzed in re Wolf Creek nuclear facility. Kansas Gas & Electric Co. v. Kansas Corporation Comm'n, 239 K. 483, 491, 720 P.2d 1063 (1986).

31. Statutory authorization empowering KCC to establish and maintain just and reasonable rates not limited to increasing rates. Farmland Industries, Inc. v. Kansas Corporation Comm'n, 24 K.A.2d 172, 180, 943 P.2d 470 (1997).

32. Recovery for sales of natural gas in plaintiff's certificated service area would not constitute retroactive rate making. United Cities Gas Co. v. Brock Exploration Co., 995 F.Supp. 1284, 1293 (1998).


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