Kansas Gas says monthly charges to begin in Dec. to recover costs of 2021 winter storm
OVERLAND PARK, Kan. (WIBW) - Starting this December, the Kansas Gas Service will include a separate line item on residential and commercial customer billing statements.
The separate charge, labeled “Winter Event Securitized Cost,” is a result of the company’s securitizations of costs it incurred to provide natural gas service to homes and businesses during the February 2021 winter storm.
The monthly securitization charge for residential customers will be $5.64 and it is estimated to decrease to $5.11 at the first adjustment which the Kansas Gas Service said will occur sometime in mid-2023. The monthly securitization charge will be updated, either upwards or downwards, depending on collections, twice a year over a 10- year term. The company estimates that securitization will save customers approximately $36.3 million.
The Kansas Gas Service said it experienced unusually high natural gas costs when there was a significant increase in natural gas market prices from high demand during the winter storm. The company said the price it pays for its gas supply is a pass-through to customers without markup.
“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.”
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