The Kansas Corporation Commission has issued its first order dealing with customer payment of deferred energy costs from the bitter cold temperatures in February, when natural gas prices skyrocketed because of heavy demand.
The order applies to about 200 customers of American Energies Gas Service in Harvey, McPherson and Marion counties. The utility reported $317,914 in costs from the bitter cold temperatures in February. Temperatures dropped as low as -18 during the cold snap. Customers will have the option of making monthly payments over a five-year period or they can make a lump sum payment. Customers who choose the lump sum option can avoid monthly carrying charges over the five-year period.
The KCC ordered utilities to defer any extraordinary costs and then come up with a plan to recoup the charges over time, in order to reduce the financial impact on customers. The agency is still looking over plans from Evergy, Black Hills Energy, and Southern Pioneer. Plans have not been filed at this time by Kansas Gas Service, Atmos, or Empire.
