Kansas does not have any laws or regulatory rules that mandate energy efficiency programs. However, according to the Energy Information Administration (EIA), Kansas electric utilities saved 971 MWh in 2009, although Westar Energy did not report to EIA. Kansas City Power and Light (which is investor-owned), Kansas City Board of Public Utilities, and Midwest Energy Cooperative (both of which are publicly-run) are the primary electric companies that offer energy efficiency programs in Kansas. Midwest Energy has an efficiency financing program that includes both electric and gas measures.
In 2007, the Kansas Corporation Commission (KCC) concluded a general investigation regarding energy efficiency programs. The resulting report recommended developing a uniform framework for reviewing and encouraging energy efficiency programs. This investigation also led to the opening of two separate dockets—one to address the cost-benefit tests used for evaluating programs and another to examine cost recovery, decoupling, and financial incentives for utilities.
In November 2008, the KCC chose not to require energy efficiency programs from the state’s electric and natural gas utilities but determined that it would collaborate with utilities as they pursue energy efficiency as a resource. The commission stated that it would consider energy efficiency program proposals that included decoupling, cost recovery and shared savings performance incentives on a case-by-case basis. Presently, utilities are not required to conduct integrated resource planning.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Kansas does not have any laws or regulatory rules that mandate energy efficiency programs. In its November 14, 2008 order in Docket No. 08-GIMX-441-GIV, the commission chose not to require energy efficiency programs from the state’s electric and natural gas utilities but determined that it would collaborate with utilities as they pursue energy efficiency as a resource. According to the Energy Information Administration, Kansas's electric utility energy efficiency programs reported 2009 savings of 971 MWh, although this figure does not include Westar Energy. Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
The majority of programs currently being offered by the Kansas utilities are rebate or financing programs. Kansas City Power and Light offers rebates for commercial and residential customers, home builders and subdivision developers for energy-efficient electric heating and water heating systems. Kansas City Board of Public Utilities (KCBPU) offers commercial customers rebates for lighting, air conditioning, motors and custom measures and offers residential customers rebates for air conditioning and programmable thermostats. KCBPU also gives rebates to home-builders that construct Energy Star-qualifying new homes. Midwest Energy has a financing program that includes both gas and electric measures.
In Kansas, Midwest Energy offers the Efficiency Kansas How$mart Program, which begins with a free energy audit to customers; any customer whose utility bills are current is eligible. If recommendations are not followed within 6 months there is a $200 audit fee. Midwest Energy pays contractors directly for work completed and adds the loan repayment charge to the customer’s bill. More information on the program can be found in the ACEEE report, Energy Efficiency Financing Programs.
Utilities administer and fund programs through customer rates. The Consortium for Energy Efficiency reports that the budget for regulated electric IOU’s efficiency programs for 2010 was $5.4 million.
Reported budgets for energy efficiency programs for 2011 are in the State Spending and Savings Tables.
Kansas Statute 66-117 (e) allows a rate of return of 0.5% to 2% on top of the rate of return authorized for capital investments for energy efficiency investments. The Kansas Corporation Commission will consider proposals from electric and gas utilities that include shared savings performance incentives on a case by case basis, however no plans have been approved for any utilities (Docket 08-GIMX-441-GIV).
The Kansas Corporation Commission does not require utilities to conduct integrated resource planning. The Kansas Energy Council, a stakeholder advisory group, produces an annual energy plan for Kansas that includes energy efficiency and renewable energy resources.
The evaluationof ratepayer-funded energy efficiency programs in Kansas relies on regulatory orders (Order in Docket No. 08-GIMX-442-GIVand Order in Docket No. 10-GIMX-013-GIV). Evaluations are administered by the Kansas Corporation Commission. Kansas has established formal rules and procedures for evaluation, which are stated in Docket No. 08-GIMX-442-GIVand Docket No. 10-GIMX-013-GIV. Evaluations for each of the utilities are conducted. Kansas uses all of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), Utility/Programs Administrator (UCT), Participant (PCT), Social Cost (SCT), and Ratepayer Impact Measure (RIM). The rules for benefit-cost tests are stated in Docket No. 08-GIMX-442-GIVand Docket No. 10-GIMX-013-GIV. Kansas specifies the TRC to be its primary cost-effectiveness test. These benefit-cost tests are required for total program and customer project level screening, with exceptions for low-income programs, pilots, and new technologies.