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Minutes for HB2435 - Committee on Energy, Utilities and Telecommunications
Short Title
Enacting the natural gas infrastructure availability act to authorize natural gas public utilities to defer to a regulatory asset all depreciation expense and carrying cost for any new plant, facilities or equipment that such utility has put into service and authorizing recovery of such regulatory asset via an interim rate adjustment mechanism.
Minutes Content for Thu, Jan 22, 2026
Chairman Delperdang opened the hearing on HB2435.
Nick Myers, Office of Revisor of Statutes, provided an overview of the bill. (Attachment2) Mr. Myers responded to questions from the committee members.
Proponent:
Patrick Vogelsberg, Kansas Gas Service (Attachment3) who testified the bill would advance a future-looking state policy that would encourage utility investment in natural gas infrastructure, directly supporting Kansas' economic development goals, and would help meet demands of customers. Mr. Vogelsberg referred to the regulatory lag fact that Kansas Gas Service is fully regulated and must get approval from the Kansas Corporation Commission before any changes in rates take effect, there's a delay between when they begin using new infrastructure and when they are allowed to recover the costs of that infrastructure through rates.
Opponent:
Justin Grady, Kansas Corporation Commission (Attachment4) who testified in opposition to the bill in it's current form. Mr. Grady added the bill would establish 100% Plant in Service Accounting (PISA) for all capital expenditures that a natural gas public utility would make in the State of Kansas. The bill would also allow for natural gas utilities to establish a new surcharge on customer bills to recover the entirety of the increase in its revenue requirement arising out of those capital expenditure and would completely insulate natural gas public utilities from the cost containing effects associated with regulatory lag, transferring these costs directly to Kansas ratepayers.
Joseph Astrab, Citizens' Utility Ratepayer Board (Attachment5) who testified in opposition to the bill stating the bill does not contain such provisions to limit ratepayer impacts or to control utility spending. Without similar limitations from other rate adjustment account, the bill risks creating incentives for the utility to significantly increase spending and to pursue rate recovery at a much higher pace than provided for in other mechanisms.
Paul Snider, Kansans for Lower Electric Rates (Attachment6) Who testified in opposition to the bill would allow gas companies to capture depreciation expense between rate cases and charge customers a surcharge for those lost earnings.
Conferees responded to questions from the committee members.
WRITTEN ONLY TESTIMONY:
Greg Kindle, Kansas Economic Development Alliance (Attachment7)
Steven Cowen, Black Hills Energy (Attachment8)
Rachel Willis, Kansas Department of Commerce (Attachment9)
Tanner Tempel, Americans for Prosperity (Attachment10)
Glenda DuBoise, AARP Kansas (Attachment11)
Chairman closed the hearing on HB2435.
Chairman Delperdang announced the next committee meeting would be Tuesday, January 27 and adjourned the meeting at 10:22am
