Kansas Corporation Commission Business Meetings, 22 Apr 2021

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From YouTube: Business Meeting for Thursday, April 22, 2021

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A

Good morning this is chair, french and I am convening the kansas corporation commission regularly scheduled business meeting for thursday april 22nd 2021 at 10 a.m. I'm joined by my colleagues, commissioner, susan duffy and commissioner dwight keane on today's agenda. We have 15 consent, agenda items and two noticed items. We will begin with the consent agenda. Commissioners, you've had an opportunity to review the consent, agenda items and I'll first ask if you have any questions about those items starting with commissioner duffy.

B

No, mr chairman, I have no questions or comments. Thank you.

A

Thank you, commissioner. Keane.

C

No questions or comments, I would move approval of the consent agenda.

B

And I second commissioner keane's motion to approve.

A

Thank you. We have a motion and a second to approve the consent agenda. Is there any further discussion of that motion? Hearing none those in favor, please vote aye.

A

Hi consent agenda is approved. We now move to our noticed items. Our first noticed item is in docket number 21 gimx 294 mis, and this is a proposed order on kansas, open records, act request and our presenter for this item is mr phoenix and shoots phoenix good morning.

D

Good morning, on january, 14, 2021 james p, zakura, president of the kansans for lower electric rates, submitted a kansas, open records, act or cora request seeking certain information designated confidential by evergy, kepco, sunflower and empire. The information designated confidential are annual compliance filings filed in docket number 13 gime 256 cpl.

D

Mr zakura also requests certain pages from the 2021 kcc annual report utilities and common carriers and pages from the 2021 kcc annual report electric supply and demand.

D

The core request was was submitted to the um to the mentioned utilities, who provided replies um stating the confidentiality of the documents and requesting that the documents not be disclosed.

D

This order finds that the information was properly designated as confidential and disclosure is not warranted, based on a review of the factors named in ksa 1228. Thus, the core request is denied pursuant to ksa 45-221 a1.

D

With that, I would recommend approval of the order and I will stand for any questions.

A

Thank you, phoenix I'll turn to the commissioners now to see if we have any questions on the order, starting with commissioner keane not for me. Thank you, commissioner. Duffy.

B

I have no questions and I move approval uh of this docket.

A

Second, we have a motion and a second to approve the order in the reference docket. Is there any further discussion on that motion? Hearing none those in favor, please vote aye aye. The order is approved. We now move to our second noticed item. This is in docket number 21.

A

Kgsg398Sho- and it is a proposed order to show cause our presenter for this item- is mr cole bailey cole.

E

Good morning, commissioners, uh before you is a show, cause order requesting kansas gas service show cause as to why it should not incur a ninety thousand dollar penalty for kansas, underground utility damage prevention, act, cut, violations and violations of the natural gas safety act typically cut by violations like this are simply handled with a penalty order, but here staff is recommending the commission of ford kgs the opportunity to mitigate some of these penalties and offer its own solution to the trend and cuddle violations over the past few years.

E

Staff's report highlights the majority of kgbs kadpa violations come from kgs contract locators usic usic has a high turnover rate, which leads to complex tasks being performed by contractors with minimal training.

E

Staff's penalty is based on an investigation of 54 kudpa violations, assigning one thousand dollar penalty for each and uh for each violation and an additional one thousand dollar penalty for 36 violations, which usic was at fault. So that's how we that's how we get to the 90.. um The the commission is tasked with creating rules to ensure utilities conform to the natural gas pipeline safety act pursuant to ksa, 66 1, comma 150.

E

Kar 8211 has adopted regulations, procedures and requirements for operator for operators to ensure pipeline safety staff believes the 36 cutback violations caused by usic.

C

E

A violation of kar-8211-4, because kgs has not done enough to properly train usic contractors, for which it is responsible for staff report, recommends the commission require kgs to develop a training method for its usic contractors.

E

Staff recognizes that providing line locates is a difficult burden for kgi kgs, and therefore, staff proposes the 36 000 penalty attributed to usic be held in abeyance for one year and at that time staff can reevaluate to determine if any progress has been made. This show cause order, um is sort of unique.

E

It's not a penalty order right now, but it's an opportunity for kgs to present solutions to the issues staff has identified in its report.

E

Therefore, the staff recommends the commission order kgs to show cause as to why it should not be required to perform an assessment of its locator training program and to modify its operation and maintenance procedures to incorporate its damage prevention improvement plan regarding evaluation of contract performance.

E

Further kgs shall show cause as to why it should not be assessed a civil penalty in the amount of ninety thousand dollars for failure to follow its operation and uh maintenance procedures related to 54 instances of not providing timely and accurate locates for natural gas pipelines.

E

um That staff recommendation I'll stand for any questions leo is tied up right now and couldn't make it to the meeting.

A

All right, thank you, cole. uh Let me turn to my fellow commissioners see if they have any questions of you, commissioner. Keane, do you have any questions on this proposed order? No questions.

C

But I have a definite comment. uh I heartily commend uh the staff for exploring this new approach to these kinds of issues and I'm going to commend you rather specifically also uh cole for being the messenger here. I think you pretty effectively set out the summary of what the order encompasses.

C

I think the the process here is really refreshing to me in the sense that, basically, if, if at this stage shifts the burden back to the company to basically demonstrate show codes and to at least provide them with an opportunity to explain or mitigate uh the penalties that uh may be forthcoming, uh I think this whole process is really is really quite positive and, uh as I say, I commend the staff for initiating this proposal and I'm hopeful that the commission, commissioner will adopt it. Thank you.

A

Commissioner, duffy.

B

I uh concur with everything that commissioner keene said about the process, but I will speak to kgs. Ultimately, you are responsible if your contractor is failing in his duties to complete um and satisfy the contract. That is on you, and that is your responsibility.

B

So that said, we are opening the door and allowing you to show us and demonstrate by data that a year from now, actually there will be improvement in this area.

B

These are economic matters and they're, also, potentially life and death matters, and so I hope that um you'll take the baton and move forward and um begin training.

B

Your contractors, at the same level that your own staff is trained. So I do applaud staff, for I think a good step forward in this matter, and with that I move approval of the order.

C

A

Thank you. We have a motion and a second to approve the order in the reference docket. Is there any further discussion on that motion? Hearing none those in favor, please vote aye aye the order is approved. Thank you. Cole. Thank.

E

A

At this time I do move the commission enter into executive session, not to exceed 15 minutes to discuss attorney-client privileged matters pursuant to ksa 75 4319 b2 for consultation, with an attorney to obtain legal advice regarding litigation.

A

I further move that the following be included in the meeting assistant, general counsel, lauren, loshman, general counsel, brian fadoten and j phillip gregson in the henson law office. We will reconvene in 15 minutes chairman french.

F

If, if I can interrupt looking at the zoom camera, I think uh are out, I think there are two members of our outside counsel that are there and just to be sure that we're accurate for uh the record that I believe it's my screen is small, but I believe it's amanda vogelsberg, um but just to be sure, she's listed on the participants uh for accuracy sake.

A

Very good ms vogel vogelsberg will also be included in the executive session. Thank you, brian.

B

I second your motion.

A

We have a motion and a second to enter into executive session for 15 minutes those in favor. Please vote.

A

A

All right, the commission has returned from executive session where no action was taken at this time. Hearing no further business to come before the commission. I would entertain a motion to adjourn.

A

And both the my commissioners are on mute.

B

I move that we adjourn on this earth day.

A

A motion and a second to adjourn on earth day, those in favor, please vote hi.

B

A

Hi. Thank you all.