Parallel Generation

FreeState wants to communicate important changes the Kansas Legislature made recently that will impact parallel generation with the passing of House Bill 2149.

AN ACT concerning distributed energy resources; requiring distributed energy system retailers to disclose certain information to customers who will construct, install and operate a distributed energy system; requiring the attorney general to convene an advisory group to establish a standard form for such disclosures and requiring publication thereof; requiring electric public utilities to disclose certain information to distributed energy retailers; providing criteria to determine appropriate system size for a customer's distributed energy system that is subject to parallel generation; establishing requirements for interconnection and operation of a distributed energy system; increasing the total capacity limitation for an electric public utility's provision of parallel generation service; establishing powers and limitations relating thereto; establishing notification requirements for when a system is no longer producing energy or the customer seeks to repair or rebuild a distributed energy system; amending K.S.A. 66-1,184 and 66-1268 and repealing the existing section.

The biggest impact this bill will have on parallel accounts is being paid back at 100% of the utility’s monthly avoided cost of energy, rather than 150% of the utility’s monthly avoided cost of energy. 

This change will be effective July 1, 2025, and it will be automatic.

There is now the option for parallel generation accounts to participate in the Time of Use rate.

The concept behind the TOU Rate is simple: rather than a single flat rate, you pay different rates for electricity based on the time of day. Under this rate, the amount of electricity you use is just as important as when you use it. The TOU Rate can help save money if you are able to reduce your weekday energy use during the hours of 3 to 6 p.m. (when electricity prices are the highest). Members on this rate are incentivized for using energy during off-peak periods (when electricity prices are the lowest).

We understand that this change may raise questions or concerns.

Please know that our team here at FreeState is here to assist you in navigating these adjustments.

The board of trustees will hold a special meeting on Wednesday, June 26, 2025, to adopt the updated rate tariff as required by the new Kansas statute.