Kansas regulators approve deal to recoup costs from 2021 deep freeze. Here is how much you could pay.
A year after Winter Storm Uri slammed Kansas, regulators approved a plan for the state's largest natural gas provider, Kansas Gas Service, to recoup $366 million in extraordinary costs.
The plan, approved by the Kansas Corporation Commission on Tuesday, will likely mean customers will pay between $5 and $7 per month extra on their gas bills for the next 5-10 years, with the exact timeframe and dollar amount still uncertain.
The exact price rise won't be locked in until KGS issues bonds to cover the cost, a move sanctioned by the KCC.
Utilities, including Kansas Gas Service, saw their costs skyrocket after historic cold temperatures hit the region, affecting gas supply and causing prices to rise to levels never imagined by energy experts and regulators.
The Natural Gas Transportation Customer Coalition, a consumer advocacy legal group on energy matters, has pegged the ultimate costs to ratepayers at up to $1 billion.
The KCC said in a news release that they believed allowing KGS to recoup the costs was in the public interest, as it would ensure they would be able to continue their operations going forward.
"A lesser response could have resulted in catastrophic property damage and serious public safety implications, including potential loss of life," the agency said. "When extraordinary costs are unavoidable and necessary to benefit the public, it is in the public interest to allow recovery of such costs."
In a statement, Kansas Gas Service said they were "pleased" with the KCC's move and felt it would ultimately be in their customers' best interest.
"We prioritize keeping our customers safe and warm during these extreme weather events and aim to recover the unprecedented costs from the high natural gas prices due to the storm with fairness and minimal impact to customers," the statement said.
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Outside investigations continue into whether firms engaged in price gouging during the deep freeze.
Attorney General Derek Schmidt said last year that he believed the natural gas price spikes during the February winter storm "appear to violate Kansas law," and is seeking expert help with the investigation and potential lawsuits.
In an email last month, Schmidt's spokesperson, John Milburn, said the search for outside counsel is ongoing and declined further comment.
Andrew Bahl is a senior statehouse reporter for the Topeka Capital-Journal. He can be reached at abahl@gannett.com or by phone at 443-979-6100.
This article originally appeared on Topeka Capital-Journal: KCC OKs Kansas Gas Service recouping costs from Feb. 2021 cold wave
