Diagram of Kansas Wind Energy Law

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An Important Time

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Outline of Kansas Wind Energy Law Tom Stratton Chief Litigation Counsel Kansas Corporation Commission Kansas Wind and Renewable Energy Conference September 24, 2008

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This is an essential time for improvement of vitality approach and mindful utility direction. The KCC's Mission is steady with these objectives. An Important Time…

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Electric Utility Jurisdiction

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KCC Responsibilities and Jurisdiction The KCC has the duty of guaranteeing that power suppliers give protected, satisfactory and dependable administrations at sensible rates. The KCC has ward over all speculator possessed and some agreeable transmission, era and dispersion electric open utilities and over metropolitan electric utilities inside specific parameters. The KCC's control reaches out to such territories as rates, expenses, charges, administrations, acts, practices, guidelines and directions.

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Overview of Kansas Statutes imperative to wind era or transmission K.S.A. 66-104: This statute characterizes an "open utility" subject to the Commission's purview. Subsection (e) gives the choice to be represented by the KCC. Given the choice under K.S.A. 66-104(e), why wouldn't an utility pick of ward?

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Overview of Kansas Statutes vital to wind era or transmission, proceeded with K.S.A. 66-128: Construction Work in Progress K.S.A. 66-1,184: The Kansas Parallel Electric Generation Services Act approves interconnection of wind era and makes a commitment with respect to the electric utility to pay no under 150% of the utility's month to month framework normal cost of vitality per kWh to clients with abundance vitality to offer.

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Other Kansas Statutory Provisions K.S.A. 66-1,184a: Off-framework offers of wind era. K.S.A. 66-1243: Interconnection Authorization K.S.A. 66-1244: KCC survey of offers of transmission and contracts for operation of transmission by endorsed organizations and administrators.

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Other Kansas Statutory Provisions, Continued K.S.A. 66-1247: Recovery of all expenses from profiting utilities when electric transmission lines are developed or updated. K.S.A. 12-895: Allows for formation of Municipal Energy Agencies. K.S.A. 58-2272: Information required to be incorporated into movements of interests including wind assets and innovations.

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Tax Exemptions and Credits under Kansas Statutes Kansas Property Tax Exemption [K.S.A. 79-201, Eleventh ]. Kansas Sales Tax Exemption [K.S.A. 79-3606(cc)] Kansas Job Creation Tax Credit [K.S.A. 79-32,160a] A gathering of Kansas laws were changed in 2003 to permit the arrangement of renewable vitality communities comprising of at least five people that create no less than 100 kilowatts (kW) of vitality (incorporates many yet not the majority of the accompanying: K.S.A. 17-4655 through 17-4681).

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Regulation of Land Use The specialist to direct land use in Kansas is under the domain of neighborhood governments through the state's arranging and zoning statutes. (K.S.A. 12-741 et seq.)

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Relevant Commission Dockets The accompanying dockets might be found at http://kcc.ks.gov/docket/docket.htm . 04-GIME-080-GIE: In the Matter of a General Investigation to Establish Standard Procedures and Agreements for Interconnection Between Electric Public Utilities and Parallel Generation Facilities. 07-GIME-104-GIV : In the Matter of the General Investigation Initiated with the end goal of Complying with Section 1254 of the Energy Policy Act of 2005 Related to Interconnection of Customer Generation .

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Relevant Commission Dockets, Continued 08-WSEE-309-PRE : In the Matter of the Petition of (Collectively "Westar") for Determination of the Ratemaking Principles and Treatment that Will Apply… for Certain Electric Generation Facilities and Power Purchase Agreements Under K.S.A. 2003 Supp. 66-1239.

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FERC/SPP Congestion Electricity Transmission

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Federal Energy Regulatory Commission (FERC) and Southwest Power Pool (SPP) Congress empowered FERC to manage discount power showcases The States and Regional Transmission Organizations (RTOs) arrange transmission, subject to the capacity of FERC to act where it considers states to have fizzled.

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FERC and SPP, Continued The KCC effectively takes an interest in the checking and direction of discount power markets, through filings at FERC and cooperation at the SPP. Most Kansas utilities, with the KCC's endorsement, have turned over operational control of their transmission frameworks to SPP. The KCC has additionally affirmed SPP's application to go about as an open utility for the constrained motivation behind overseeing and planning certain transmission offices in Kansas.

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FERC and SPP, Continued Commissioner Moffet effectively serves on SPP's Regional State Committee. Compliant with K.S.A. 74-633, Commissioner Moffet is approved to take an interest completely in SPP basic leadership.

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Some Helpful Resources Kansas Energy Plan 2007 , Kansas Energy Council, January 2007. http://www.kec.kansas.gov/energy_plan/energy_plan.pdf Wind Energy Siting Handbook: Guideline Options for Kansas Cities and Counties, Kansas Energy Council, April, 2005. http://www.kec.kansas.gov/reports/wind_siting_handbook.pdf Wind and Prairie Task Force Final Report , (Kansas Geological Survey Open-record Report 2004-29) June 7, 2004. Find specifically Appendix 6—Wind and Prairie Task Force Guidelines for Kansas Landowners in Creating and Negotiating Equitable Wind Energy Leases. http://kec.kansas.gov/wptf/WPTFFinalReport.pdf Community Wind Financing; A Handbook by the Environmental Law & Policy Center , Kubert, Charles, et. al. (2004). "This manual was made by Charles Kubert for the Environmental Law and Policy Center in 2004. It discusses plans of action, wellsprings of value, concede and advance projects, motivators, and power buy assentions for group wind ventures." (windustry.org)

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Some Helpful Resources http://www.elpc.org/archives/WindHandbook2004.pdf The Law of Wind: A Guide to Business and Legal Issues , Stoel Rives LLP, Third Edition (2007) http://www.stoel.com/webfiles/LawOfWind_WEB_05_07.pdf Wind Power: A Lawyer's Guide to Representing Landowners , Ostrander, Mustafa P., Business Law Today, Vol 16, No. 6 (July/August 2007) By Mustafa P. Ostrander http://www.abanet.org/buslaw/blt/2007-07-08/ostrander.shtml Wind Power: Generating Electricity and Lawsuits , Brown, Brit T. furthermore, Escobar, Benjamin An., Energy Bar Journal, Vol 28, No. 2 (2007). http://www.eba-net.org/docs/elj282/Wind_Power.pdf Sample Wind Farm Lease Option Agreement: http://www.horizonwind.com/ventures/whatweredoing/topcrop/reports/27LivingstonSUPAppendix9LandOwnersandOA.pdf

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Contact Information Tom Stratton Kansas Corporation Commission 1500 SW Arrowhead Road, Topeka, KS 66604-4021 t.stratton@kcc.ks.gov For duplicates of the content going with this introduction, please contact Gail Alderson: g.alderson@kcc.ks.gov

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