The Kansas Corporation Commission has approved a settlement agreement and financing order allowing Atmos Energy to issue securitized bonds to recover $92.7 million in deferred costs resulting from the 2021 winter storm Uri.

In the wake of Winter Storm Uri, the Kansas Legislature passed the Utility Financing and Securitization Act, which allows utilities to use securitized bonds to pay for extraordinary costs at more favorable terms than traditional financing.

The exact amount of the winter weather recovery charge Atmos customers will see on their monthly bill can’t be determined until the bonds have been issued and the term and interest rates are set. However, based on estimates provided during the proceeding, it was estimated the monthly charge would be approximately $5.78 per month over 10 years. Without the bonds, ratepayers would see a charge of over $10.50 per month using traditional ratemaking.

The Commission has stated that any proceeds recovered by Atmos resulting from state or federal investigations into possible market manipulation, price gouging, etc., will be passed on to customers.