Securitization

As your natural gas utility provider, we are proud to have served you as safely and reliably as possible during those challenging times. By purchasing natural gas to keep our customers’ homes and businesses warm throughout Winter Storm Uri, your safety was our top priority. Like most utilities, Kansas Gas Service experienced unusually high natural gas demand and a significant increase in natural gas market prices during the storm. However, it’s important to note that Kansas Gas Service does not set or mark up the price we pay for the gas we deliver to customers. Knowing the high cost of gas would have made our customer bills significantly more than usual, we worked to find a solution to minimize their monthly impact.

What do I need to know about my bill?

The Kansas Corporation Commission (“KCC”) has recently approved a securitization mechanism that was developed to allow the collection of those extraordinary costs from Winter Storm Uri over several years, thereby lessening the impact on customers’ bills.

How will this impact my monthly bill?

The average residential customer will see a fixed monthly charge of $5.64. This charge will appear as a “Winter Event Securitized Cost” line item on your bill beginning December.

Frequently Asked Questions

Answers to your questions about the Winter Weather Cost Recovery

What is securitization?

Securitization is a process that allows the payment of debts by the issuance of bonds repaid over a longer, more manageable period than a typical recovery period. Securitization has proven to be a lower-cost capital option compared to traditional financing which carries a higher interest rate. Securitization has been used in other states to allow recovery of costs incurred by utilities due to extreme weather events like hurricanes and fires.
How much are residential customers having to pay?

The fixed monthly Winter Event Securitized Cost charge is $5.64 for the average residential customer and will appear as a separate line item on customer billing statements.
Do transportation customers pay for securitization?

The securitization charge does not apply to transportation service customers. They purchase gas from third parties (energy suppliers and marketers). However, the securitization charge would apply if a transportation customer reverts to sales service.
When will I see the securitization charge on my bill?

For Kansas Gas Service customers, the Winter Event Securitized Cost charge will appear on their bills beginning in December 2022.
How long will I have to pay for securitization?

The securitization charge will be a fixed monthly fee added to customers’ bills for the duration of the securitized bonds’ 10-year term that was approved by the KCC.
What is the settlement fee?

The settlement fee applies to sales customers who switch to transportation services. The fee would be based on the present value of the expected charges the customer would have paid as a sales customer over the remaining period the securitization charge is being recovered.
What if I have more questions?

If you have additional questions you’re not seeing here, email us at media@onegas.com. If you would prefer to speak with one of our representatives, you can reach us at 800-794-4780.

We're Here to Help!

We have a webpage dedicated to offering payment assistance options and programs available to Kansas Gas Service customers.

Click here to visit our CARES page

The Pipeline

Visit our Blog for more helpful information.

Gas Supply

Answers to your questions about cost of gas and how it affects your bill can be found HERE.
Securitization Blog

Learn more about the Kansas Corporation Commission's vote to approve our securitization mechanism in January of 2022 HERE.
The Pipeline

Our blog, The Pipeline, offers the latest news and discover articles on energy tips, energy innovation and how our employees are making a difference in the communities we serve.

Winter Storm Uri Cost Recovery By the Numbers:

As of December 2022

Residential Customers Pay: $5.64
General Service – Small Pay: $10.03
General Service – Large Pay: $38.04
Term: 10 years
Interest Rate: 5.486%
Total Savings: Approximately $36.3 million