KCC directs Sundowner and Sunflower to report on settlement progress or propose hearing schedule by Dec. 12

The Kansas Corporation Commission on Nov. 25 approved an order directing parties in docket 24SUNW590SSHO to file a joint status report by Dec. 12 or, if settlement negotiations have not made substantial progress, to file a proposed procedural schedule including a hearing date.

Presenter Brian Fedotin summarized the docket history: “On 03/05/2024, the commission issued a show cause order giving Sundowner 30 days to explain why it should not be required to apply for a certificate. On 05/10/2024, Sundowner filed an application for a certificate and responded to the show cause order acknowledging that it is running a public water utility without a certificate.” He said staff filed a report and recommendation on Oct. 8 that Sundowner transfer the water utility within 90 days through a direct sale or public auction to a qualified operator. He further noted Sunflower’s Nov. 7 response that favored possibly transferring the system to an improvement district and pursuing settlement negotiations.

Fedotin told the commission the order “directs the parties to submit a joint status update by December 12 to inform the commission of the status of the negotiations. If that status update can't identify substantial progress towards a settlement, then by that December 12 date, the parties are directed to submit a proposed procedural schedule, which includes, a date for a hearing.” The commission voted to approve the order as presented.

The order sets a near-term deadline for the parties and signals that, absent settlement progress, the commission expects to set a contested hearing date to resolve the certification and ownership questions.