Kansas gas customers: You'll be paying for yours and someone else's too!

[KansDem]

I posted this in G.D. but thought I'd post it here as well.

I tried to find an electronic form of this article, which appeared today in the "Business Section" of the Kansas City Star, but either there won’t be one or it hasn’t been posted on the internet yet.

So not only are Kansas gas users going to be paying more for inflated gas prices, but now we’ll be expected to pay for the ones who don’t (or can't).

From Kansas City Star, January 27, 2006, Business (Section C, page 1)

Cost-of-gas charge gets expanded role

By STEVE EVERLY
The Kansas City Star

Gas utility customers in Kansas will automatically pay the uncollected gas costs owed by other utility customers in a program quietly approved by state regulators last summer.

The measure, which is being pushed by utilities in other states including Missouri, expands the role of the cost-or-gas rider or purchased gas adjustment, which is already on gas bills and covers wholesale gas costs and some other related expenses such as storage fees. The charge has traditionally been paid by the customer using the fuel.

But Kansas, one of only a handful of states that so far have made the move, is expanding the charge’s role to include collecting unpaid gas costs owed by other customers. Those gas costs account for about 70 percent of an annual gas bill.

The program became effective last fall and is being phased in: it is eventually expected to add millions to gas utility bills in the state. The utilities estimated, using 2004 figures, that the program could add $4 million to bills annually. Critics say that figure is bound to be much higher.

Expanding the cost-of-gas charge, say the utilities, is necessary to replace a system that has allowed some uncollected debt to be covered by money embedded in other rates that are part of people’s gas bills. Whatever could not be collected had to be written off, which reduced profits, and the utilities had to rely on future rate cases to try to increase the amount of bad debt they could recover.

The new system is necessary, the utilities say, because the rising cost of gas has increased the amount of bad debt. The utilities want to be able to recover hose costs more quickly and more fully.

(22 more “paragraphs” in print form)

Whatever happened to the “cost of doing business?”

Gas consumers in other states may want to see if this kind of program is in the process of being "quietly approved" by your state regulators.

[Lori Price CLG]

1. Kicked, and recommended for 'Greatest' page.

Plus, I'll give it a kick, periodically.
Lori Price

[Lori Price CLG]

2. Is there a link, though? I want to add it to www.legitgov.org. Thanks!

[atommom]

3. Here's a link

http://www.kansascity.com/mld/kansascity/13721531.htm

[KansDem]

4. Thanks, atommom!

I'll see if I can add it to the GD and MO forums :hi:

[lostnfound]

5. Public risk, privatize profits. Unbelievable, and typical. nt

[greiner3]

6. When you said Kansas I thought;

quietly approved by state regulators last summer

And Intelligent Design passed through my head. If it's the latest thing in compassionate conservatism, then I'm sure Ohio will soon, if they don't have it here already, pass that law.

[Mabus]

7. Can we say"domino effect"?

If they raise the rates on customers who can barely pay the old rates, to help pay the "uncollectibles", won't those "living on the edge" get pushed over? Once those on the margin are pushed over the edge, they get their gas cut off and then become another uncollectible.

Can't they delay this "hike" until a time when the rates are lower?

Finally, I'd gladly pay the extra (like I have a choice :eyes: ) if it got the gas turned back on to those families who couldn't afford their bills in the first place.

[MuseRider]

8. I would too Mabus

but we both know that is not how this is going to work. :cry:

[Mabus]

9. How many children will go to bed cold, don't have hot water or meals

because their parents can't afford to heat the house, keep the water heater going and/or cook dinner? How many elderly are in the same boat? Hell, how many of our fellow Kansans doing without heat?

I found a recent article in the Star from which I grabbed some illustrative excerpts:

Posted on Mon, Jan. 16, 2006
COMMENTARY
Stay warm by working the system
MIKE HENDRICKS

***

The daughter, Rita Berry, told me that after paying $288 for gas and electric, on top of medicine and other ongoing expenses, her mom was left with exactly $2.95 for groceries for the rest of January.

You read that right: Just shy of three bucks to eat on for the month.

***

There is no one-stop shopping for energy assistance if you or a loved one need help paying the heating bill. One is faced with a confusing hodge-podge of assistance programs administered by a wide assortment of agencies.

***

Some groups take applications for the federal energy-emergency assistance program known as LIEAP. It provides grants to low-income people for one monthly utility bill each year.

source: http://www.kansascity.com/mld/kansascity/news/columnists/mike_hendricks/13635368.htm

Sickening isn't it? In the meantime I seriously doubt that the gas company would go under by delaying this program until a more reasonably economic time (say this spring) and go ahead and reconnect some of the people they have disconnected. I mean, they are going to get every f**king cent they are owed one way or another. :grr:


I can bear to pay a little more each month if it means someone will have heat, warm water and a working stove. Hell, I'll even pay for them to dry their clothes. It's just a bonus that it will free up some money for them to buy things like medicine and food.

[cfield]

10. How many ? Too many

And it breaks my heart. My husband and I barely afford our payments, but I'd chip in an extra 10 bucks every month if it meant turning it on for someone else. I'm so fucking sick of this state and this country and this administration for making it so tough! If I wasn't at work right now, I'd be in tears. It's hard to fight them even now.

:cry: :mad: :mad: :mad: :mad:

[Mabus]

13. I've done volunteer work at some of the schools

and the difference between the have's and have not's seems to be growing. I hear you. It's weird. We don't have a lot but I know we have a lot more than some of the people we run into day to day.

[proud2BlibKansan]

11. Mabus I can get you a list of agencies right here in KC

that help with utility bills. We refer our families almost daily to one agency or another. Some are better than others, but all are limited by the amount of donations they receive.

[Mabus]

12. I saw them when I looked at the utility websites

And that's another problem, the more expense things get fewer people will donate less money.

[ComerPerro]

14. Conservatives are trying to take all the "risk" out of "risk and reward"

for large businesses, at least.

Its bullshit.

Don't conservatives justify windfall profits by spewing crap about the "Free Market", the "Invisible Hand", and arguments about how these companies deserve their profits because they take all the risks?