News Release

September 11, 2006

KCC Pursues Consumer Energy Efficiency Programs

The Kansas Corporation Commission (KCC) today took formal action initiating an investigation to explore and determine how electric and natural gas utility companies can encourage and promote energy efficiency programs in Kansas. In its order the Commission stated, "In these times of high energy prices and anticipated need for new electric generation, there should be no doubt that efficient energy use by both natural gas and electric consumers is desirable."

In addition to all jurisdictional electric and natural gas utilities, the KCC has invited all non-jurisdictional cooperative and municipal utilities, the Citizens' Utility Ratepayer Board (CURB), the Sierra Club, and other interested parties to participate in this matter.

In its order, the Commission presents a set of questions for comment from the utility companies and other parties to determine the process and parameters by which to explore all the possible alternative approaches in making energy efficiency a key component of energy policy. The Commission also must determine and clarify to what extent it has legal authority to require or encourage utilities to offer energy efficiency programs. Major areas to be addressed are: are there barriers to efficiency, and if so, what are they; program costs recovery and potential rate impacts; and can the Commission consider costs and benefits beyond those directly related to energy generation in its calculations of rates that would fund energy efficiency programs.

"Developing a Kansas Energy Efficiency Plan will be a major undertaking for the KCC and the utilities we regulate," said KCC Chair Brian Moline. "It is imperative that all stakeholders and decision-makers work in a collaborative manner to develop new policies and mechanisms to effectively move towards real energy efficiency in Kansas."

Today's action follows two energy efficiency workshops held earlier this year by the Commission. The workshops initiated discussion and began the process of identifying a few of the many possible alternatives in developing energy efficiency programs. There are many questions that must be answered such as, when and how should utility companies promote energy efficiency by their customers and what ratemaking treatment or special mechanism would be necessary and appropriate.

In August 2006, the Commission publicly endorsed the goals and objectives of a National Action Plan for Energy Efficiency developed by the National Association of Regulatory Utility Commissioners (NARUC). The Action Plan presented policy recommendations for creating a sustainable, aggressive national commitment to energy efficiency through gas and electric utilities, utility regulators, and partner organization.

Docket No. 07-GIMX-247-GIV