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: Sponsor information unavailable

Signed by Governor

utilitiesenergy

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 4 costs, 0 mixed.

Refunds and no double billing on gas surcharge

Each year, the utility must compare GSRS money collected to the allowed amount and file a reconciliation. The surcharge is adjusted to refund overcollections or recover shortfalls. When base rates later include these costs, the GSRS resets to zero to prevent double billing. The commission can still disallow costs in a rate case and require offsets to pay customers back.

Faster process for new gas surcharges

Your gas company can ask the Kansas Corporation Commission to add a monthly gas system reliability surcharge (GSRS). Staff must file a review report within 60 days. The commission must issue an order within 90 days. Utilities can change this surcharge no more than once every 12 months. These filings are not treated as a "rate increase" under K.S.A. 66-117, which streamlines approval.

Higher cap on monthly gas surcharge

For the first GSRS filing, the monthly residential charge can add up to $1.35 above current base rates. For later filings, it can rise by up to $0.80 over the most recent GSRS amount. This fee is a fixed monthly charge, not based on how much gas you use.

How the gas surcharge is set

The GSRS is a monthly fixed fee, not based on usage. The commission must use a set formula to size it: the utility’s last approved capital costs on the net investment, plus income and excise taxes, plus depreciation. The fee is split among customer classes using the most recent rate case allocation, or an average of utility and staff proposals if that split is unclear.

More gas utility projects billed to customers

More types of utility projects can be recovered through the GSRS. This includes replacing or relining mains, meters, service lines, unreimbursed relocations, safety and risk programs, and system security, including cybersecurity. Projects must be in service, not already in base rates, and not aimed at adding new customers. The law defines “obsolete facility” and lets related cost‑effective replacements be included.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 143 • No: 19

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

Actions Timeline

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

    4/9/2026House
  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 Committee on Utilities

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

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

    2/25/2026Senate
  8. Received and Introduced

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

    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 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 Committee on Energy, Utilities and Telecommunications

    1/14/2026House
  16. Introduced

    1/13/2026House

Bill Text

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