TOPEKA - The Kansas Corporation Commission (KCC) has approved a plan proposed by the City of Eskridge to recover deferred natural gas costs related to the February 2021 winter weather event. The utility, like others regulated by the KCC, was ordered 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.

Beginning next month, Eskridge utility customers will see a separate, additional charge on their bill assessing $2.54 per Mcf (one thousand cubic feet) for their gas usage. The funds collected will be used to make payments on the 10-year low interest loan the City received from the State Treasurer to pay its $1.1 million February natural gas bill. In comparison, Eskridge’s total yearly gas cost in 2020 was approximately $175,000.

As part of the agreement, the KCC will review the gas rates associated with the extraordinary gas costs each year to ensure that Eskridge is able to continue to make its loan payments, and only the actual amount of extraordinary gas costs Eskridge has incurred will be recovered from customers during the 10-year period. The annual review and true-up process will also ensure that Eskridge customers will benefit from any Federal and State investigations into price gouging or market manipulation that result in monetary reimbursements.

This is the second winter payment plan approved by the Commission. KCC staff is currently evaluating plans submitted by Southern Pioneer, Black Hills Energy, and Evergy. Atmos, Empire, and Kansas Gas Service have not yet filed plans.

Today’s order is available at http://estar.kcc.ks.gov/estar/ViewFile.aspx?Id=359e21bc-599f-4519-94a0-4e9188ec9c3b. A recording of today’s Commission Business Meeting is available on the KCC You Tube channel.