As much as $5.19 more a month could be charged
Atmos Energy natural gas bills will be increasing to pay for last February’s high natural gas costs, according to an announcement today from the Kansas Corporation Commission.
The KCC approved a settlement agreement for Atmos to recover $102 million in costs incurred during the February 2021 winter storm.
The KCC estimated that residential customers would see an increase of from $3.75 to $5.19 a month based on a 10-year or 15-year term, according to a KCC news release, although the exact amount of the increase was not yet available.
Parts of Wyandotte County are served by Atmos, while other parts of the county are served by the Kansas Gas Service Co. The KCC also approved a settlement agreement for these higher winter February 2021 costs for Kansas Gas Service Co. in February. A news release stated Kansas Gas Service residential customers may pay an estimated $5 to $7 more a month over a period of five to 10 years.
The KCC stated that under the terms of the settlement, Atmos will apply for Securitized Utility Tariff Bonds to obtain the most favorable financing to reduce costs to ratepayers. The 2021 Kansas Legislature passed the Utility Financing and Securitization Act, which allows utilities to use securitized bonds to pay for extraordinary costs at more favorable terms than traditional financing. The KCC will review the Atmos plan to ensure the lowest possible bond costs will be passed on to customers, according to the news release. The application and review process could take six to eight months.
If ratepayers had been asked to repay the charges over a one-year time period, the cost would have been an additional $47.40 per month, according to the KCC.
The KCC stated it was in the public interest for Atmos to incur the extraordinary costs to ensure the integrity of the gas system and ensure continuous service to its customers.
“A lesser response could have resulted in catastrophic property damage and serious public safety implications, including potential loss of life. When extraordinary costs are unavoidable and necessary to benefit the public, it is in the public interest to allow recovery of such costs,” a KCC spokesman stated.
Today’s order also stated that any proceeds received by Atmos from ongoing federal or state investigations into market manipulation, price gouging or civil suits will be passed on to customers.
Atmos Energy delivers natural gas to about 135,000 Kansas customers.
The KCC order for Atmos can be viewed at https://estar.kcc.ks.gov/estar/ViewFile.aspx/20220324102715.pdf?Id=a5b88cfd-87b2-4f84-8f1a-1753cf72b2f8&utm_medium=email&utm_source=govdelivery.
This story has been updated to reflect the estimates of Kansas Gas Service monthly increases for residents.