Category: Consumer news

Settlement approved for Atmos Energy to recover 2021 winter storm costs

Customers’ bills estimated to go up $5.78 a month over 10 years

The Kansas Corporation Commission has approved a settlement agreement and financing order giving Atmos Energy authorization to issue securitized bonds to recover $92.7 million in deferred costs and associated carrying costs resulting from the 2021 Winter Storm Uri.

The use of lower interest securitized bonds is expected to save ratepayers an estimated $8.5 million compared to recovery through traditional rates, according to a KCC news release.

The exact amount of the winter weather recovery charge Atmos customers will see on their monthly bills won’t be determined until the bonds are issued due to variables such as term and interest rate based on current market conditions, according to the KCC. However, based on the interest rate estimates provided during the proceeding, it was estimated the monthly charge would be approximately $5.78 per month over 10 years. Without securitized bonds, ratepayers would see charges of approximately $10.55 per month over five years using traditional ratemaking.

During the winter storm, the KCC ordered regulated utilities to do everything possible to continue providing natural gas service to its customers, defer the charges, and then develop a plan to allow customers to pay the unusually high costs over time to minimize the financial impact, according to the KCC. The commission emphasized 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, the KCC stated.

In the wake of Winter Storm Uri, the 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.

Wholesale natural gas prices are not regulated by the KCC or any other government entity. The U.S. Congress deregulated natural gas prices back in the mid-1980s. Prices are market driven by supply and demand. The KCC has stated that any proceeds recovered by Atmos resulting from state or federal investigations into possible market manipulation, price gouging, or other areas, will be passed on to customers.

Today’s order is available at https://estar.kcc.ks.gov/estar/ViewFile.aspx/22-538_Order_Approving_Unanimous_Settlement_Agreement.pdf?Id=aafadfba-968c-4bcb-9855-a314508d0d99&utm_medium=email&utm_source=govdelivery.

A recording of today’s KCC business meeting featuring comments by commissioners, is available on the KCC YouTube channel at https://www.youtube.com/watch?v=UcSxzaGi6jE.

Thousands of Kansans eligible for student debt forgiveness, White House officials say

by Rachel Mipro, Kansas Reflector

Kansans who have struggled to repay student debt may receive relief, with hundreds of thousands in the state eligible for some form of debt forgiveness, the Biden-Harris administration announced Tuesday.

In Kansas, about 360,900 student loan recipients qualify for some form of loan forgiveness, with 225,500 Kansan Pell Grant recipients eligible. In the neighboring state Missouri, 777,300 borrowers are eligible for some form of loan forgiveness, with 502,200 eligible Pell Grant recipients.

President Joe Biden unveiled his plan for student debt relief in August, saying his administration would forgive thousands of dollars in student loans to help people recover from the COVID-19 pandemic, before student loan payments resume in January.

Debt cancellation applies to current borrowers, with 2020-2021 income levels factored into consideration of eligibility for forgiveness. The majority of student debt relief is targeted at households making less than $75,000 annually.

The administration said the plan helps diverse groups, as about 71% of Black undergraduate borrowers and 65% of Latino undergraduate borrowers are recipients of Pell Grants, which are awarded to students with the lowest household income. Pell Grant recipients are eligible for $20,000 in debt forgiveness. Other loan recipients can have up to $10,000 in loans forgiven.

More than 40 million borrowers across the U.S. qualify for some form of loan forgiveness, and around 20 million borrowers could have all of their loans forgiven under the student debt relief plan, according to White House officials.

During a Tuesday White House virtual press conference on the program, officials said the plan had widespread backing.

“We know that many, many Americans are supportive of taking action to make student debt burdens more manageable, even those who don’t currently have student debt, which makes sense given that many of them will have experienced this challenge in the past,” said Carmel Martin, the White House deputy assistant to the president for economic mobility.

“Providing this relief and giving people breathing room as we move back into student loan repayment will help those who are supported to be stronger contributors to our economy. They’ll be able to think about buying houses, starting businesses, be in a better financial position for retirement, which will benefit the economy overall,” Martin added.

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.

See more at https://kansasreflector.com/briefs/thousands-of-kansans-eligible-for-student-debt-forgiveness-white-house-officials-say/

Report outlines how residents can save on health care costs

U.S. Rep. Sharice Davids, D-3rd Dist., has released a report on how Kansas residents can save on health care costs, due to a federal health care law that passed earlier this month.

Rep. Davids was joined by Molly Gotobed, a Kansas City, Kansas, resident, at Reach Healthcare Foundation to share information that would help residents take advantage of the new provisions.

The new law will help families in the 3rd District save an average of $980 a year if they buy their own insurance and will extend the same savings to eligible families with unaffordable employer-sponsored insurance, according to Rep. Davids.

“Lowering costs for Kansas families continues to be one of my top priorities, and that certainly includes lowering health insurance costs for Kansans,” Rep. Davids said. “The savings I released today in my new report will ensure Kansans can afford their medical coverage without having to sacrifice other everyday expenses like gas, groceries, or education. Above all, many of these benefits will be felt immediately and continue to positively impact our community for years to come.”

“For years, we’ve turned away families offered employer-sponsored coverage even if the plan costs half their paycheck,” said Molly Gotobed, Kansas Assistance Network program director. “Other than families in the Medicaid gap, this was the biggest issue our families faced when trying to get coverage and it just didn’t make sense. Fixing the ‘family glitch’ will literally save lives and I’m so excited to call clients back to share the good news.”

“Lowering the cost of health coverage is good for families, households and local economies,” said Brenda Sharpe, REACH Healthcare Foundation president and CEO. “In a state that still has not expanded Medicaid, we are grateful for policies that offer Kansans some financial relief and an improved opportunity to achieve better health.”

The report identifies savings that are available immediately or starting next year. Key takeaways include:


• For the 31,000 Kansans in the 3rd District who purchase their own insurance, the federal law caps premiums based on income levels, saving an average of $980 a year.


• The savings also apply to Kansans who get their insurance through their employer. Those who currently spend more than 9.6% of their income on employer-based health insurance will soon be able to seek affordable coverage through the exchanges, fixing the “family glitch.”

These savings were included in Davids-supported federal actions, including the Inflation Reduction Act, comprehensive legislation to lower health care and energy costs and reduce the national debt by more than $300 billion. Additional provisions in the law that reduce health care costs include allowing Medicare to negotiate for lower prescription drug costs, capping the cost of insulin at $35 a month for Medicare beneficiaries, and capping out-of-pocket drug costs at $2,000 per year for those using Medicare.

  • Story from Rep. Davids’ office