Beginning in December, Kansas Gas Service customers will see an increase in their monthly bill.
Customers will notice a separate line item labeled “Winter Event Securitized Cost” on their statements. Kansas Gas Service said this comes from dramatic cost increases as a result of Winter Storm Uri in February of last year.
Officials said KGS experienced “unusually high” natural gas costs when there was a significant increase in natural gas market prices due to high demand during the severe winter weather in 2021.
The monthly “Winter Event Securitized Cost” for residential customers is $5.64 and is estimated to decrease to $5.11 at the first adjustment in the middle of 2023. The monthly securitization charge will be updated either upwards or downwards twice a year over 10 years.
The company said that spreading the costs over a longer time frame will help keep customers’ monthly bill lower and more manageable.
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.
For more information, visit KansasGasService.com/securitization.
