The Chair opened the hearing on HB 2435.

Nick Myers, Assistant Revisor, Office of Revisor of Statutes, provided an overview on the bill and stood for questions (Attachment 1).

Patrick Vogelsberg, Manager Government Affairs, Kansas Gas Service, spoke in support of the bill and stood for questions (Attachment 2),  He stated that this would modernize the existing regulatory framework that is almost 20 years old.  The goal would be to reduce regulatory lag on growth investments.

Justin Grady, Director of Utilities Division, Kansas Corporation Commission, gave neutral testimony on the bill and stood for questions (Attachment 3). He said this was a policy call for the legislature to make. The bill would increase the cap for the recovery of their investments from .80 to $1.35, which includes the .25 impact for CPI inflation.  This bill would only apply to natural gas distribution utilities.

Joseph Astrab, Consumer Counsel, Citizens' Utility Ratepayers Board, testified in opposition to the bill and stood for questions (Attachment 4) He said the bill would increase the rates for customers, and that the gas service companies did not demonstrate any direct ties between this increase and economic development with these kinds of investments.

WRITTEN ONLY TESTIMONY:

Rachel Willis, Kansas Department of Commerce (Attachment 5)

Steven Cowen, Black Hills Energy (Attachment 6)

Bart Armstrong, Atmos Energy (Attachment 7)

The Chair closed the hearing on HB 2435.