The Kansas Corporation Commission has approved a settlement agreement outlining how Kansas Gas Service will recover $366 million in deferred natural gas costs incurred during last February’s winter weather event.
The utility, like others regulated by the KCC, was ordered to do everything possible to develop a plan to allow customers to pay the unusually high costs over time to minimize the financial impact.
Under the terms of the agreement, KGS will apply for bonds to reduce costs to ratepayers.
The KCC will review the plan to ensure the lowest possible bond costs will be passed on to customers.
The application and review process could take six to eight months.
Until the process is complete, the exact dollar amount KGS customers will see on their monthly bills or the length of the payment period is unknown.
Estimates range anywhere from $5 to $7 per month for a period of 5-10 years.