Commission orders Sundowner parties to file joint status report by Dec. 12, warns against prolonged negotiations

The Kansas Corporation Commission on Nov. 25 directed parties in docket 24SUNW590SSHO to file a joint status report by Dec. 12 on ongoing settlement negotiations over the ownership and operation of a public water utility.

Commission staff attorney Brian Fedotin summarized the docket’s procedural history, saying the commission issued a show-cause order on March 5, 2024 requiring Sundowner to explain why it should not be required to apply for a certificate. Sundowner later filed an application and acknowledged operating a public water utility without a certificate. In an October staff report and recommendation, staff recommended that Sundowner transfer the water system within 90 days through direct sale or public auction to a qualified operator. Fedotin said Sunflower responded by supporting settlement negotiations and suggesting a transfer to an improvement district.

The order adopted by the commission directs the parties to submit a joint status update by Dec. 12 to report the status of negotiations. If that update does not identify substantial progress toward a settlement, the parties must file a proposed procedural schedule, including a date for hearing. Commissioners voted aye and approved the order.

The directive does not itself transfer ownership or resolve certification questions; it sets a near-term reporting deadline and requires the parties to propose a timeline for a hearing if negotiation stalls.