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HB 2435

Substitute for HB 2435 by Committee on Energy, Utilities and Telecommunications - Authorizing natural gas public utilities to recover certain growth-related investments in the gas system reliability surcharge, increasing the cap on the amount that the monthly fixed charge may be increased for residential customers and reducing the time for the state corporation commission to act on gas system reliability surcharge filings.

2025-2026 Regular Session

Kansas bill allows natural gas utilities to defer new infrastructure depreciation costs and recover them faster through ratepayer surcharges, bypassing traditional rate case reviews.

Approved by Governor on Monday, April 6, 2026
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Bill Summary · HB 2435

Legislative bill overview

HB 2435 would allow Kansas natural gas utilities to defer depreciation expenses and carrying costs for new infrastructure onto their regulatory balance sheets rather than immediately expensing them. These deferred costs would then be recovered from ratepayers through an interim rate adjustment mechanism, enabling faster cost recovery outside the normal rate case process.

Why is this important

This mechanism allows utilities to recover infrastructure investment costs more quickly than traditional regulatory timelines, potentially accelerating natural gas system expansion or modernization. However, it directly affects what ratepayers pay and when, shifting the timing of cost recovery burden onto current customers rather than spreading costs across longer periods.

Potential points of contention

  • Ratepayer impact: Accelerating cost recovery through interim adjustments means higher near-term bills for customers, potentially affecting low-income households disproportionately
  • Regulatory oversight: The interim adjustment mechanism may bypass traditional rate case scrutiny, reducing public input opportunities and regulatory review of utility spending decisions
  • Infrastructure necessity debate: Contention over whether proposed "new plant, facilities or equipment" represents genuinely needed infrastructure or utility preference for expansion that might not be cost-justified under standard review

Compiled from official sources — confirm details with the bill’s official record.

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