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Minutes for HCR5023 - Committee on Utilities
Short Title
Denouncing price gouging and market manipulation in the natural gas marketplace and supporting investigations into the extraordinary price increases of wholesale natural gas during the extreme cold weather event of February 2021.
Minutes Content for Tue, Mar 8, 2022
Nick Myers, Office of the Revisor of Statutes, gave an overview of the resolution. HCR 5023 states the position that the Kansas legislature denounces any potential price gouging or market manipulation in the natural gas marketplace during from the extreme weather event of February 2021.
In February 2021, the state of Kansas faced an extreme cold weather event that led to unprecedented prices of natural gas and electricity in the state. The resolution notes that during the 2021 legislative session, the legislature acted to alleviate the drastic and immediate financial impact of such price spikes by authorizing certain loan programs to help pay for the up-front extraordinary utility costs. Though, HCR 5023 recognizes that such immediate relief measures will continue to impact Kansans over the next decade those extraordinary costs are passed through to Kansas utility customers.
In addition to legislative efforts to protect Kansas utility ratepayer interests, the Kansas attorney general and the federal energy regulation commission (FERC) possess certain investigatory powers that could lead to corrective action if profiteering or market manipulation occurred. Both the attorney general and FERC have announced efforts to investigate such matters and HCR 5023 supports such investigations and any warranted corrective actions.
HCR 5023 also supports efforts to protect the interests of Kansas utility ratepayers should any investigation lead to corrective action or settlement. If passed by both chambers, the Secretary of State would send copies of the resolution to the congressional members from Kansas, the chairperson of FERC and the Kansas attorney general.
Proponents providing oral testimony:
None.
Proponents providing written testimony:
Lynn Rogers, Kansas State Treasurer (Attachment 1) (Attachment 2)
David Nickel, Consumer Council, Citizens’ Utility Ratepayer Board (Attachment 3)
Paul Snider, Kansan Industrial Consumers Group (Attachment 4)
Randy Stooky, Senior Vice President of Government Affairs and General Counsel, joint testimony for Kansas Grain and Feed Assoc., Kansas Agribusiness Retailers Assoc., Renew Kansas Biofuels Assoc. (Attachment 5)
Leslie Kaufman, Kansas Electric Cooperatives (Attachment 6)
There was no opponent testimony.
After the bill brief and referring the Committee to the written testimony, the Chairman opened for discussion on the resolution. Sen. Olson commented he believes there needs to be a Federal investigation into the trading patterns on Wall Street with regards to the price gouging and market manipulation. Senator Francisco asked whether the Attorney General or his staff had been contacted to get their comments on the resolution. The Chairman stated he is aware they were considering a number of cases, but does not have an update at this time.
With no other discussion, Sen. Thompson asked for a motion to move the resolution. Senator Franciso said she would prefer to have time taken to have the Attorney General's office contacted before the Committee takes action on the resolution.
The Chairman postponed action on the resolution until another day, and adjourned the meeting at 1:42 pm.
