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66-131. Permit to transact business required; exceptions; limitations on commission's authority and jurisdiction; time period for determination of application. (a) No person or entity seeking to construct electric transmission lines as defined in K.S.A. 66-1,177, and amendments thereto, or common carrier or public utility, including that portion of any municipally owned utility defined as a public utility by K.S.A. 66-104, and amendments thereto, governed by the provisions of this act shall transact business in the state of Kansas until it shall have obtained a certificate from the corporation commission that public convenience and necessity will be promoted by the transaction of said business and permitting said applicants to transact the business of a common carrier or public utility in this state. In no event shall such jurisdiction authorize the corporation commission to review, consider or effect the facilities or rates charged for services or in any way the operation of such municipally owned or operated electric or gas utility within the corporate limits or outside but within three miles of the corporate limits of any city, or facilities, or rates charged for services or in any way the operation of facilities or their replacements now owned by any such utility. No prescribed rates, orders or other regulatory supervision of the corporation commission shall be contrary to any lawful provision of any revenue bond ordinance authorizing the issuance of revenue bonds to finance all or any part of the municipally owned or operated electric or gas utility so subjected to the jurisdiction of the corporation commission. This section shall not apply to any common carrier or public utility governed by the provisions of this act now transacting business in this state, nor shall this section apply to the facilities and operations of any municipally owned or operated utility supplying electricity or gas outside of the corporate limits of any municipality where such facilities and operations are in existence on the effective date of this act, but any extension of such facilities or any new facilities located outside of and more than three miles from the municipality's corporate limits, shall be subject to the requirements of this section, nor shall this section apply to any municipally owned or operated electric or gas utility furnishing electricity or gas to a facility owned or jointly owned by such municipality and located outside the corporate limits of such municipality.

(b) The commission shall issue a decision on a common carrier or public utility's application for a certificate of public convenience and necessity within 180 days of receiving the application. Nothing in this subsection shall preclude an applicant and the commission from agreeing to a waiver or an extension of the 180-day period.

(c) The commission shall issue a decision on a common carrier or public utility's application for mergers or acquisitions within 300 days of receiving the application. Nothing in this subsection shall preclude an applicant and the commission from agreeing to a waiver or an extension of the 300-day period. The commission shall expeditiously process every application covered within this subsection.

History: L. 1911, ch. 238, § 31; R.S. 1923, 66-131; L. 1968, ch. 333, § 7; L. 1978, ch. 263, § 3; L. 2012, ch. 101, § 2; L. 2014, ch. 107, § 2; July 1.

Revisor's Note:

Other provisions of 1968 act, see 12-806, 12-808, 12-808a, 12-808b, 12-820, 12-821, 13-1223, 66-104.

Cross References to Related Sections:

Recording on books of corporation, see 66-134.

Exception hereto, see 66-1,150.

Law Review and Bar Journal References:

Case in annotation No. 11 discussed and analyzed in 1956-57 survey of oil and gas law, W. F. Schell, 6 K.L.R. 213, 220 to 222 (1957).

Survey of Kansas contract law (1967-1969), 18 K.L.R. 401, 409 (1970).

"TeleKansas and the Future of Alternative Telecommunications Regulation in Kansas," Darin Dugger, 43 K.L.R. 687, 705 (1995).

Attorney General's Opinions:

Public utilities; acquisition and operation of city plants. 84-128.

Telecommunication public utilities; permit to transact business required; limitations on KCC authority and jurisdiction. 90-6.

Gas pipeline safety; application of rules and regulations of federal pipeline safety act. 91-101.

CASE ANNOTATIONS

1. Provisions of section not applicable to city electric light plant. Humphrey v. City of Pratt, 93 Kan. 413, 416, 144 P. 197.

2. Injunction for want of license not maintainable by rival company. Telephone Co. v. Telephone Association, 94 Kan. 159, 161, 146 P. 324.

3. Discontinuing public service wrongfully; restoration; necessity of certificate. The State, ex rel., v. Telephone Co., 112 Kan. 701, 703, 212 P. 902.

4. Limitation placed on unnecessary duplication of public utilities. Kansas Gas & Elec. Co. v. Public Service Comm., 122 Kan. 462, 466, 251 P. 1097.

5. Utility doing business in state must have permit to enter new territory. Kansas Gas & Elec. Co. v. Public Service Comm., 124 Kan. 690, 261 P. 592.

6. Section cited as restriction on property rights. Glenn v. Callahan, 125 Kan. 44, 49, 262 P. 583.

7. Municipally owned utility not governed by state utilities act. Holton Creamery Co. v. Brown, 137 Kan. 418, 421, 20 P.2d 503.

8. Section construed with 66-104 and held inapplicable to municipally owned utility. Board of Public Utilities v. Kansas City P. & L. Co., 139 Kan. 842, 844, 33 P.2d 320.

9. Provisions inapplicable to municipally owned utility; cases reviewed; act constitutional. Kansas Gas & Elec. Co. v. City of McPherson, 146 Kan. 614, 617, 620, 72 P.2d 985.

10. Commission not required to consider carrier's financial arrangements in issuing certificate. Warren Petroleum Corp. v. State Corporation Comm., 178 Kan. 381, 285 P.2d 777.

11. Not applicable to pipeline company carrying own oil. State, ex rel., v. Sinclair Pipe Line Co., 180 Kan. 425, 438, 304 P.2d 930.

12. Order of commission unlawful; issuance of certificate hereunder not supported by express findings of fact. Kansas Public Service Co. v. State Corporation Commission, 199 Kan. 736, 741, 743, 746, 433 P.2d 572.

13. Noncompliance herewith; contract void; parties not in pari delicto; action maintainable thereon. Wycoff v. Quick Way Homes, Inc., 201 Kan. 442, 446, 441 P.2d 886.

14. Cited in upholding a commission order enlarging the certificate of authority of an electric public utility. Central Kansas Power Co. v. State Corporation Commission, 206 Kan. 670, 676, 482 P.2d 1.

15. "Lawful" related to statutory authority; "reasonable" based on substantial, competent evidence. Kansas Electric Power Coop., Inc. v. Kansas Corporation Comm'n, 235 Kan. 661, 665, 683 P.2d 235 (1984).

16. Right-of-way grant is not an illegal contract; parties did not transact business without proper certificate. Kansas Gas and Electric Co. v. Will Investments, Inc., 261 Kan. 125, 128, 928 P.2d 73 (1996).

17. Claim by party was not subject to administrative tolling of statute of limitations. United Cities Gas Co. v. Brock Exploration Co., 984 F. Supp. 1379, 1382 (1997).

18. Water district has an exclusive right to provide pressurized treated water within district's boundaries. Water Dist. No. 1 v. Mission Hills Country Club, 265 Kan. 355, 363, 960 P.2d 239 (1998).

19. No requirement for KCC to make a finding of public convenience in order to grant a certificate to municipally owned utility to provide electric service within area annexed by city. Lyon-Coffey Electric Coop, Inc. v. Kansas Corporation Comm'n, 29 Kan. App. 2d 652, 31 P.3d 962 (2001).


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