K.S.A. § 50-6,147 — KS Code / Chapter 50 / Article 6 / Section 50-6,147
50-6,147 - Distributed energy retailers; required disclosures to customers; violations; civil action; civil penalty.
Status: in_force

50-6,147. Distributed energy retailers; required disclosures to customers; violations; civil action; civil penalty. (a) As used in K.S.A. 50-6,147 through 50-6,149, and amendments thereto:

(1) "Distributed energy customer" means a property owner of a single-family dwelling or multifamily dwelling of two units or fewer and who is offered a contract from a distributed energy retailer for the construction, installation or operation of a distributed energy system that is primarily intended to offset the energy consumption of such single family or multifamily dwelling.

(2) "Distributed energy retailer" means any person or entity that sells, markets, solicits, advertises, finances, installs or otherwise makes available for purchase a distributed energy system in the state of Kansas.

(3) "Distributed energy system" means any device or assembly of devices and supporting facilities that is capable of feeding excess electrical power generated by a customer's energy producing system into the utility's system, such that all energy output and all other services will be fully consumed by the distributed energy customer or the utility, and that is or will be subject to an agreement under K.S.A. 66-1,184, 66-1263 et seq., and amendments thereto, or a net metering tariff that was voluntarily established by a utility.

(4) "Permission to operate" means the same as defined in K.S.A. 66-1,184, and amendments thereto.

(5) "Utility" means an electric public utility, as defined by K.S.A. 66-101a, and amendments thereto, any cooperative, as defined by K.S.A. 17-4603, and amendments thereto, an electric utility owned by one or more such cooperatives, a nonstock member-owned electric cooperative corporation incorporated in this state or a municipally owned or operated electric utility.

(b) No person or entity required to be registered with the secretary of state pursuant to the business entity standard treatment act, K.S.A. 17-1901 et seq., and amendments thereto, shall engage in the business or act in the capacity of a distributed energy retailer within this state unless such person or entity is registered with the secretary of state, in good standing and authorized to conduct business in the state.

(c) Prior to entering into a contract with a distributed energy customer for a distributed energy system, a distributed energy retailer shall provide such customer a separate disclosure document that:

(1) Is written in at least 10-point font;

(2) is written in the language that the distributed energy retailer used to speak to the distributed energy customer during the sales process or the language requested by such customer;

(3) includes a description of the make and model of the distributed energy system's major components and the expected useful life of the distributed energy system;

(4) includes a guarantee concerning the quantity of energy that the distributed energy system will generate on a measurable interval and a remedy if such system does not comply with such guarantee within one year following the date the system received permission to operate;

(5) does not contain blank spaces that may be subsequently filled in with terms or conditions that materially affect the timing, value or obligation of the contract unless such terms and conditions are separately acknowledged in writing by the distributed energy customer;

(6) includes, in bold font and highlighted type, the total aggregate cost to the distributed energy customer that will be incurred over the entirety of the contract. Such total aggregate cost shall be separately acknowledged in writing by the distributed energy customer;

(7) includes a description of the ownership and transferability of any tax credits, rebates, incentives or renewable energy certificates in connection with the distributed energy system;

(8) includes the name and certification number of the individual certified by the north American board of certified energy practitioners who will oversee the permitting and installation of the distributed energy system or the name and license number of the master electrician or electrical contractor who will oversee the permitting and installation of the distributed energy system;

(9) provides a description of the process and all associated fees for transferring any financing, warranty or other agreements relating to the distributed energy system to a new owner;

(10) includes the name, phone number, email and mailing address of the person or entity that the distributed energy customer may contact for questions regarding performance, maintenance or repair of the distributed energy system;

(11) includes a description of the assumptions used for any savings estimates that were provided to the distributed energy customer and provides a description of the applicable utility billing structure that pertains to the distributed energy system. Such descriptions and assumptions shall include the same provisions as outlined in the standard form published by the attorney general pursuant to K.S.A. 50-6,149, and amendments thereto;

(12) includes a statement that the distributed energy retailer shall provide the distributed energy customer proof that, within 30 days of completion of installation:

(A) All permits required for the installation of the distributed energy system were obtained prior to installation, if applicable;

(B) the distributed energy system was inspected and approved by a qualified individual pursuant to the requirements of any local municipal ordinance or county resolution;

(C) the necessary interconnection applications and documentation were submitted to and approved by the affected utility; and

(D) the distributed energy system received permission to operate;

(13) includes a statement that any recurring payments for a distributed energy system shall pause and not be due if such system does not receive permission to operate within 90 days of the date that the first recurring payment is due. Such recurring payments may resume at the time that such system receives permission to operate. Any payments due during any such pause shall either be forgiven or added to the end of the financing term and shall not incur any penalties for nonpayment during such term;

(14) includes a statement describing any rate escalation, balloon payment or potential reconfiguration of payment structure;

(15) includes a statement as to whether operations or maintenance services are included as part of the original contract price and whether the costs to remove, reinstall and repair the distributed energy system are included as part of the original contract price should the distributed energy system need to be removed, reinstalled or repaired due to natural causes or due to any exterior repair, replacement, construction or reconstruction work on the premises;

(16) includes a statement describing the expected start and completion dates for the installation of the distributed energy system;

(17) includes a statement indicating whether any warranty or maintenance obligations related to the distributed energy system may be transferred by the distributed energy retailer to a third party and, if so, a statement that provides: "The maintenance and repair obligations under your contract may be assigned or transferred without your consent to a third party who, if required pursuant to state law, shall be registered with the secretary of state, in good standing and authorized to conduct business in the state and bound to all the terms of the contract. If a transfer occurs, you will be notified in writing of any change to the name, mailing address, email or phone number to use for questions and payments or to request system maintenance or repair";

(18) includes a statement indicating whether the distributed energy retailer shall place a lien, notice or other filing on or against real property as a result of the contract;

(19) includes a statement, in bold font and highlighted type, indicating whether the distributed energy retailer will impose any fees or other costs upon the distributed energy customer. If any such fees or other costs will be charged to the distributed energy customer, the aggregate total of such fees and other costs shall be provided and separately acknowledged in writing by the distributed energy customer;

(20) includes a statement in capital letters and bold font and highlighted type that states: "[name of distributed energy retailer] is not affiliated with any utility company or governmental agency and shall not claim any such affiliation"; and

(21) may include any additional information that the distributed energy retailer considers appropriate, only if such additional information is not intended to conceal or obscure the disclosures required pursuant to this section.

(d) The disclosure statement required pursuant to this section shall be signed and dated by the distributed energy customer at least one calendar day after the date that the contract for the distributed energy system was executed.

(e) (1) Any person or entity that violates the provisions of subsection (b) or any distributed energy retailer that fails to provide and perform the disclosures in the form and manner required pursuant to this section or that makes a materially misleading statement as a part of or when presenting such disclosures shall be liable for a civil penalty in an amount not to exceed $10,000 for each such violation. Such violator shall be liable to the aggrieved person or distributed energy customer, or to the state, for the payment of such civil penalty. Such civil penalty shall be recoverable in an action brought by the aggrieved person or customer or the attorney general, county attorney or district attorney. Any such civil penalty shall be in addition to any other relief that may be granted pursuant to any other remedy available in law or equity.

(2) If a distributed energy retailer fails to comply with this section, any contract entered into between the distributed energy retailer and the distributed energy customer that pertains to the distributed energy system shall be deemed null and void.

(f) This section shall not apply to a transaction of real property on which a distributed energy system is already located.

(g) The provisions of this section shall take effect and be in force from and after July 1, 2025.