KansasHB 24352025–2026 Regular SessionHouseWALLET

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.

Sponsored By: Committee on Energy, Utilities and Telecommunications

Signed by Governor

senate committee on utilitieshouse committee on energy

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Higher allowed gas surcharge increases

The law raises the allowed increase in the residential fixed monthly gas surcharge from $0.80 to $1.35. This caps each permitted increase, not the total surcharge, and does not require utilities to charge the maximum. The first increase is measured against existing base rates; later increases are measured against the latest surcharge. Utilities can change the surcharge once per calendar year, replacing the once-every-12-months rule. Changes in consecutive years can therefore occur less than 12 months apart.

More project costs on gas bills

Kansas gas utilities can recover more project costs through the Gas System Reliability Surcharge between full rate reviews. Eligible projects include new customer connections, safety upgrades, security improvements, and required relocations with no reimbursement. Investments must be in service and used or required for use, and excluded from the latest general rate case. Allocated corporate costs are excluded from the added investment category, but are allowed for system security. The surcharge calculation includes depreciation, taxes, and a return based on the utility’s last approved cost of capital and eligible investment costs, adjusted for accumulated depreciation and deferred income taxes.

Gas bill refunds or added charges

Utilities must compare surcharge collections with allowed revenue after each 12-month calendar period or when seeking a surcharge change. Commission-approved adjustments can refund excess collections or collect shortfalls from customers. Commission staff must report within 60 days, and the commission must issue an order within 90 days, down from 120. When later base rates include previously surcharged costs, the surcharge must reset to zero for those costs, preventing double collection. The commission can still reject costs or offset earlier surcharge collections during a later full rate review.

Sponsors & Cosponsors

Sponsor

  • Committee on Energy, Utilities and Telecommunications

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 286 • No: 38

House vote • 4/23/2026

Yea: 28 Nay: 12

Yes: 28 • No: 12

House vote • 4/23/2026

Yea: 115 Nay: 7

Yes: 115 • No: 7

Senate vote • 3/19/2026

Final Action - Passed

Yes: 28 • No: 12

House vote • 2/19/2026

Final Action - Substitute passed

Yes: 115 • No: 7

Actions Timeline

  1. Approved by Governor on Monday, April 6, 2026

    4/6/2026House
  2. Enrolled and presented to Governor on Friday, March 27, 2026

    3/26/2026House
  3. Final Action - Passed; Yea 28, Nay 12

    3/19/2026Senate
  4. Committee of the Whole - Be passed

    3/18/2026Senate
  5. Committee Report recommending bill be passed by Senate Committee on Utilities

    3/10/2026Senate
  6. Hearing: Thursday, February 26, 2026, 1:30 PM — Room 548-S

    2/26/2026Senate
  7. Referred to Senate Committee on Utilities

    2/25/2026Senate
  8. Received and Introduced

    2/24/2026Senate
  9. Final Action - Substitute passed; Yea 115, Nay 7, Absent 3

    2/19/2026House
  10. Committee of the Whole - Committee Report be adopted recommending substitute bill be passed

    2/18/2026House
  11. Committee of the Whole - Substitute bill be passed

    2/18/2026House
  12. Committee Report recommending substitute bill be passed by House Committee on Energy, Utilities and Telecommunications

    2/16/2026House
  13. Hearing: Thursday, February 12, 2026, 9:00 AM — Room 582-N

    2/12/2026House
  14. Hearing: Thursday, January 22, 2026, 9:00 AM — Room 582-N

    1/22/2026House
  15. Referred to House Committee on Energy, Utilities and Telecommunications

    1/14/2026House
  16. Introduced

    1/13/2026House

Bill Text

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