Governor signs bill providing low-cost loans to families, businesses experiencing high utility bills

Gov. Laura Kelly has signed a bill to provide low-cost loans to Kansans experiencing increased utility bills because of the extreme cold temperatures in February.

“Since extremely cold temperatures hit our state in February, my administration has worked with local and national partners to find solutions to provide relief to Kansas families and businesses experiencing surging utility costs,” Gov. Kelly said. “This legislation is a critical step in our continued response – and I thank the Legislature and State Treasurer Lynn Rogers for their collaborative effort to get this bill to my desk.”

Senate Bill 86 establishes the Kansas extraordinary utility costs loan deposit program.

The loan program will be administered by the Kansas State Treasurer.
“I want to thank Governor Kelly for signing this bipartisan legislation into law today. This is critical and necessary for Kansas communities and businesses to fully recover from the extraordinary weather event in February as well as the pandemic we continue to endure,” State Treasurer Lynn Rogers said. “My staff and I are ready to move forward with rolling out the low-cost loan programs the first week of May.”

Senate Bill 86 is online at http://www.kslegislature.org/li/b2021_22/measures/documents/sb86_enrolled.pdf.

Half of Kansas counties turn down COVID-19 vaccines even though they’re far from herd immunity

Sixty-two Kansas counties rejected their weekly allocations of COVID-19 vaccines from the state this week even though only roughly 34% of Kansans have received at least one shot.

by Abigail Censky, Kansas News Service

Even as Kansas remains far from reaching the coveted public health standard of herd immunity against COVID-19 — essentially starving off the virus because it runs out of vulnerable bodies — more than 60 counties just turned down their weekly allotment of vaccine doses.

Not long ago, local health officials struggled to get enough doses for people clamoring for protection in a pandemic. Now they’re straining to get people willing to take their shots — and sorting out how to make the most of doses given out to smaller groups.

Consider Barton County in central Kansas. It’s named for Clara Barton, the founder of the American Red Cross. So far, it’s given at least one dose of the vaccine to about 30% of its adults compared to 36.4% across the state.

A decline in demand

“Herd immunity is great and 80% sounds wonderful,” said Karen Winkelman, a nurse and the Barton County health director. “But I don’t think we would ever reach that.”

She’d be happy if half the adults in Barton County got vaccinated. Herd immunity typically requires that more than three-fourths of a population get protected against a virus.

If counties like Barton plateau in that 30 to 50% range, experts typically worry that the community remains vulnerable to sickness, to overwhelmed hospitals and to avoidable deaths.

“That’s a problem,” said Dennis Kriesel, the executive director of the Kansas Association of Local Health Departments. “Everyone would agree 30% is not going to do it.”

Settling for lower immunization rates, he said, invites more waves in the deadly pandemic.

“It would mean that we would still have a great likelihood that COVID is going to stay present in the community,” Kriesel said.

The 50% of a county that’s vaccinated will experience more freedom to socialize without masks or to eat at indoor restaurants.

“But on the flip side, with so many people that are unvaccinated, if (COVID-19) stays and takes root and continues to spread, that’s what develops the variants, because these things are mutating,” Kriesel said. “They’re always mutating.”

Barton County isn’t alone. This week, 62 counties declined their weekly allocations of vaccines from the state.

On weekly calls with the Kansas Department of Health and Environment, Winkelman said, “there has been talk of that very thing. … ‘Do you feel like you’ve saturated your community?’ ‘Maybe.’”

Cheyenne, Decatur, Lane, Phillips, Sheridan, and Woodson counties have skipped their allocations for the past four weeks. Their immunization rates range from roughly 26% to 32%.

Demand for vaccinations is stagnating. A spokesperson for Gov. Laura Kelly said that Kansans may feel less threatened by the pandemic after a steady drop in infections, hospitalizations and deaths.

“There seems to be a lack of urgency with some individuals waiting to get a vaccine when it is most convenient,” the governor’s office said in an email.

Counties can also receive vaccines through federal programs like the Retail Pharmacy Program and the Federal Dialysis Program, and from federal agencies like the Department of Defense or the Department of Veterans Affairs.

Kriesel said counties could be skipping their allocations for other reasons: vaccine hesitancy and a part of the population that’s indifferent to the vaccine.

“It’s not a question of safety. … It’s a, ‘Yeah, but if I get COVID, I might have a sniffle,’ sort of thing,” he said. “So, I don’t know if I count those as vaccine-hesitant. People are more just disinterested.”

Changing strategy

Kriesel said there are plans underway to target younger high school-aged populations, which make up a large number of new cases in the state.

“I’m hoping that will get us a decent way further along on that path,” he said. “If that gets us the 30 to 50(%), that’s great, but is still not enough.”

Meanwhile, the state is creating a public health campaign to target people who are indifferent or reluctant to get vaccinated.

The minimum Moderna shipment comes with 10 vials. Once a vial is punctured it must be used within 12 hours. The minimum Pfizer shipment is 195 vials. They last just six hours after the seal is broken.

“Even if you’re doing a good job — and I’m sure Kansas is — of spreading the vials across providers, the providers themselves are hesitant unless they have actually the right number of people lined up for that day to puncture that vial,” said Claire Hannan, the executive director of the Association of Immunization Managers.“The packaging is meant for high volume and we just don’t have that high volume in rural areas,” she said.

Hannan said rural areas may need to shift from mass vaccination sites to private providers who are trusted in the community, and retail pharmacies that may have closer relationships with local patients.

That’s the direction Barton County has moved toward. The county accepted 500 doses this week. Now it’s offering walk-ins at the health department for the first time since January, and it’s sharing some of the county’s allotment with the three area hospitals.

But Winkelman, the nurse and county health director, said she won’t twist people’s arms to get vaccinated.

“I would like to see the number higher,” she said, “but I can also respect people’s decisions.”

Abigail Censky reports on politics for the Kansas News Service. You can follow her on Twitter @AbigailCensky or email her at abigailcensky (at) kcur (dot) org. The Kansas News Service is a collaboration of KCUR, Kansas Public Radio, KMUW and High Plains Public Radio focused on health, the social determinants of health and their connection to public policy.
Kansas News Service stories and photos may be republished by news media at no cost with proper attribution and a link to
ksnewsservice.org.
See more at https://www.kcur.org/news/2021-04-21/half-of-kansas-counties-turn-down-covid-vaccines-even-though-theyre-far-from-herd-immunity.

Utilities just got a new financial tool that could speed the end of coal plants in Kansas

by Brian Grimmett, Kansas News Service

Lawmakers basically let utilities refinance the cost of their old power plants. And if they get the debt from those coal-fired facilities off the books, they can shut them down and switch faster to renewable energy sources.

Wichita, Kansas — Utility companies in Kansas will soon have a new accounting tool that could speed the closure of coal-fired power plants — and save customers money.

The financial tool is known as securitization. It’s not a new idea, but it is complex. The Kansas Legislature passed a bill approving the use of the tool after more than two years of discussion.

Here’s what you need to know about the change, and how it could remake how utilities generate electricity in Kansas.

What is securitization?

It’s a way for a utility company to refinance what it owes on some of its large investments — think mostly coal plants — at a much lower interest rate.

Instead of paying off an old loan at a higher interest rate, a utility can clear the debt from building a plant off its books, replacing that cost with a lower-interest bond backed by bill-paying customers.

And while the debt is paid off through the new bonds, the utility has new freedom to switch to cheaper sources of energy like wind, solar.

How will this save customers money?

One key is how the sort of return utility shareholders are promised by state regulators. Without the refinancing, they’re promised about a 9% return on the money they invested in an old power plant. With the refinancing, the company no longer makes a return on the plant and customers only have to pay the interest from the bond — about 2%.

Closing a plant also eliminates operational and maintenance expenses. If replaced with renewable energy, a closure also eliminates fuel costs. A utility company doesn’t make money on that fuel, but does pass the expense on to customers.

Ashok Gupta, an energy economist with the Natural Resource Defense Council, said replacing coal with renewable energy is better for the environment, less expensive to operate and provides utilities with new investment opportunities.

“That’s what creates this win-win-win for utilities, their customers and the environment,” he said.

State regulators won’t sign off on any plan unless utilities can show that the total costs of retiring and refinancing a plant and any new investments won’t increase customers’ bills.

What could go wrong?

Some environmental advocates worry that the tool won’t be used to replace aging coal with renewable energy. They wanted rules demanding that new investments go toward renewable energy.

“We do a disservice to our state, to our citizens and to the environment if what happens is we retire the coal plants and instead build a whole bunch of gas plants,” said Dorothy Barnett, the executive director of the Climate and Energy Project.

What incentives does a utility company have to use the tool?

It’s all about money. Operating aging coal plants is expensive, and increasingly unprofitable. As long as those investments are still on the books and running, there’s only so much new investment regulators will let a company make.

Evergy lobbyist Jason Klindt said without access to this low-cost type of financing the best course of action for the company would be to keep coal plants running. That’s because it would be the only way to provide the return its shareholders expected.

So if everybody wins, why didn’t regulators let utilities play with the books like this before?

Before the effort to transition away from fossil fuels started to gain steam, utilities didn’t have much reason to think about shutting fossil fuel plants down early. The coal plants were essential, cheap and working the way the utilities thought they would when they made the original investment 40 – 50 years ago.

But the transition is happening. Renewable energy is cheaper and cleaner than coal.

Is anybody else doing this?

About 20 states have some kind of securitization law. In the past few years, the concept has become more popular as utility companies look for ways to transition away from fossil fuels.

Some states have also used the tool to help pay for repairs when natural disasters destroy infrastructure. In Kansas, natural gas companies have said they’re interested in using the tool to cover costs that came with when natural gas prices spiked during the February cold snap.

Brian Grimmett reports on the environment, energy and natural resources for KMUW in Wichita and the Kansas News Service. You can follow him on Twitter @briangrimmett or email him at grimmett (at) kmuw (dot) org. The Kansas News Service is a collaboration of KCUR, Kansas Public Radio, KMUW and High Plains Public Radio focused on health, the social determinants of health and their connection to public policy.
Kansas News Service stories and photos may be republished by news media at no cost with proper attribution and a link to ksnewsservice.org.
See more at https://www.kcur.org/news/2021-04-05/utilities-just-got-a-new-financial-tool-that-could-speed-the-end-of-coal-plants-in-kansas
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