Ratepayers with Kansas Gas will see increased monthly bills as a direct impact from devastating cold almost exactly a year ago.
The Kansas Corporation Commission has approved the utility’s plan to recover $366 million in deferred natural gas costs. This includes an application for so-called Securitized Utility Tariff Bonds, which — according to the KCC — let utilities “pay for extraordinary costs at more favorable terms than traditional financing.” Once the application and review process is done, possibly by early fall, customers will know exactly how much in additional money they will pay to cover the bonds. The current estimate is $5 to $7 a month for the next 5-10 years.
The commission says it’s in the public interest for Kansas Gas to absorb these costs because it will ensure ongoing service to customers and continue the “integrity of the gas system.”
Extreme cold in mid-February last year froze up numerous oil- and gas-producing facilities in Oklahoma and Texas, forcing rolling energy blackouts for several days across the Central, Southern and Northern Plains.
