Kansas Gas Service customers to pay more on monthly bills starting in December

Kansas Gas Service
Kansas Gas Service(KWCH)
Published: Nov. 18, 2022 at 3:36 PM CST
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WICHITA, Kan. (KWCH) – Starting in December, Kansas Gas Service customers will see a separate line item labeled “Winter Event Securitized Cost” on their billing statements. KGS said the new line comes from the “extraordinary costs” incurred to provide natural gas service to homes and businesses during Winter Storm Uri in February 2021.

“Kansas Gas Service experienced unusually high natural gas costs when there was a significant increase in natural gas market prices from high demand during the winter storm,” said KGS. “By purchasing natural gas to keep Kansas homes and businesses warm throughout the storm, the Company made safety its top priority. The price Kansas Gas Service pays for its gas supply is a passthrough to customers without markup.”

The monthly securitization charge for residential customers is $5.64 and is estimated to decrease to $5.11 at the first adjustment occurring mid-year in 2023. The monthly securitization charge will be updated, either upwards or downwards, depending on collections, twice a year over a 10-year term.

“Knowing the high cost of gas would have made our customers’ bills significantly more than usual, we worked to find a solution to minimize the monthly impact to customers,” said Jeff Husen, Vice President of Rates and Regulatory for ONE Gas, parent company of Kansas Gas Service. “Spreading the costs over a longer time frame helps keep customers’ monthly bills lower and more manageable than recovery through traditional approaches to setting rates.”

In August, the Kansas Corporation Commission approved a settlement agreement and financing order to allow Kansas Gas Service to issue securitized bonds to recover the extraordinary costs resulting from the storm.

The company estimates the new charge will save customers approximately $36.3 million.

To address frequently asked questions, Kansas Gas Service has developed a webpage at KansasGasService.com/securitization.