House Status:
Senate Status:
Senate Status:
Minutes for SB279 - Committee on Utilities
Short Title
Concerning the gas safety and reliability surcharge.
Minutes Content for Thu, Feb 1, 2018
Chairman Olson opened the hearing on SB 279 - Concerning the gas safety and reliability surcharge. He called for an Office of Revisor of Statutes overview of the bill.
Matt Sterling explained that the bill makes several changes to definitions used in the act, to the cost recovery process for infrastructure expenses and other changes to GSRS. The bill proposes to increase the maximum surcharge for a residential customer from $0.40 to $0.80 per residential customer per month. (Attachment 1)
Proponent Rick Grundman applauded benefits of the bill: 1.) KCC retains complete over-sight and approval authority; 2.) provides a limitation of filings before being required to file a rate case; 3.) allows for expedited recovery of safety-related investments; 4.) the reduces costumer "rate shock"; and 5.) it involves more frequent reporting on utilities' capital investments in safety initiatives. (Attachment 2)
Proponent Jerry Watkins believed that the bill would promote regulatory certainty in accelerating the replacement of aging infrastructure and the timely recovery of those costs while keeping the customer impact in mind. (Attachment 3)
Proponent Jennifer Ries shared that the bill would effectively allow her organization to double the pace of replacement with the latest pipeline technologies. (Attachment 4)
Opponent David Nickel stated his opposition to the bill because, as he pointed out, it practically eliminates the public utility compact and would allow gas utilities to collect most of their capital investments through surcharges. (Attachment 5)
Opponent Paul Snider stated concerns that the bill is not in the best interests of consumers. He explained that it would allow utilities to use it for any new investment. (Attachment 6)
Written Only Opponent Testimony:
Ernest Kutzley, AARP (Attachment 7)
Written Only Neutral Testimony:
Leo Haynes (Attachment 8)
Seeing no more testimony Chairman Olson closed the hearing on the bill.
