The final plan is in place for Kansas Gas Service to recover its costs from the brutal winter cold from 18 months ago.
The Kansas Corporation Commission says it has approved a settlement agreement and finance order, which gives Kansas Gas the authorization it needs to issue what are called securitized bonds. This will let Kansas Gas recover almost $330 million in deferred costs and “associated carrying costs.”
Kansas Gas also says this will mean an increase in monthly bills for customers, but the increase won’t be as high as it would have been if Kansas Gas recovered its costs through traditional rates. The final amounts won’t be set until bonds are issued, but the charge — listed as “winter event securitized cost” on monthly statements — will range from $4.87 to $6.42 over a seven-to-10-year time period, slightly lower than the $5 to $7 estimate after the KCC tentatively approved the Kansas Gas plan back in February. The KCC says traditional ratemaking would have resulted in a monthly increase of $9 a month over five years or almost $14 a month over three years.
