5 July 2023
KANSAS (KSNT) – In February 2021, many southern states were struck with exorbitant gas bills when utility providers struggled to keep up with energy and natural gas demand during Winter Storm Uri.
From Feb. 9 to Feb 19, the cost of natural gas increased 15,000% from $4 per MMBTU to over $600 per MMBTU. During that time, electric energy costs increased from roughly $25 per MWh to over $3000 per MWh, according to Garden City Director of Public Works and Utilities Mike Muirhead.
In March 2021, Governor Laura Kelly and the Kansas Legislature established the City Utility Low-Interest Loan Program allowing up to $100 million to be loaned to cities across Kansas following Winter Storm Uri. Cities were given up to 10 years to repay the loans on non-fixed interest rate loans at 2% below market interest rates.
In total, 54 cities and one municipal energy agency submitted applications for the City Utility Low-Interest Loans agreement, according to the Kansas Treasurer’s Office.
Garden City had the largest loan agreement at $10,074,199 and decided to pass the impact onto all customers based on usage over a period of time rather than a ‘huge’ increase all at once, Muirhead said.
“The price of the two (electric and gas utilities) impacted the City of Garden City’s electric utility by roughly $10m,” Muirhead said. “The Governing Body entered into a loan agreement with the State of Kansas on March 17, 2021 for the $10m and continues to pay down the loan as agreed upon.”
As of Jan. 3, 2023, Kansas still has a remaining loan balance of $50,572,454 of a total issued $78,409,646. Seven cities have since repaid their loans.
Money owed on City Utility Low-Interest Loans as of Jan. 3, 2023.
City or Municipal Energy AgencyLoan AmountCurrent Loan BalanceCity of Alma$501,450$92,012City of Altamont$727,592$346,524City of Argonia$294,095$246,940City of Arma$401,281$330,001City of Belleville$600,000$416,120City of Burlingame$810,000$680,121City of Burrton$500,000$419,830City of Cassoday$181,272$127,842City of Cawker City$100,000$53,939City of Cheney$1,472,116$1,179,956City of Chetopa$250,000$209,921City of Denison$150,000$106,537City of Eskridge$1,158,730$978,253City of Fredonia$700,000$561,099City of Garden City$10,074,199$8,459,214City of Garnett$2,900,000$2,324,442City of Halstead$2,000,000$1,679,323City of Hesston$5,330,000$4,383,115City of Howard$496,039$397,596City of Humboldt$1,500,000$1,202,314City of Jamestown$300,000$251,898City of Kechi$970,377$814,789City of Kingman$400,000$328,932City of La Harpe$140,714$118,155City of Little River$397,259$318,411City of Louisburg$2,639,994$2,116,054City of Lyons$3,000,000$2,467,061City of Mcfarland$76,844$64,522City of Mclouth$281,000$187,694City of Montezuma$200,000$160,304City of Morland$87,000$60,050City of Moundridge$1,777,477$1,461,715City of Neodesha$413,747$1,805City of Neodesha$411,253$273,738City of Norton$572,741$271,126City of Oberlin$312,950$130,687City of Osage City$1,650,000$1,385,442City of Osawatomie$700,000$561,099City of Partridge$110,831$93,060City of Pratt$2,775,686$2,330,605City of Rozel$205,382$168,895City of Seneca$695,306$571,803City of Spearville$250,000$150,288City of Sylvia$149,133$119,918City of Uniontown$80,000$27,595City of Walton$215,000$172,331City of Winfield$8,460,234$6,770,361City of Winfield$54,560$54,560Kansas Power Pool$18,000,000$4,944,431Sub-Total:$75,474,269$50,572,454City of Auburn$130,000Loan RepaidCity of Blue Mound$82,000Loan RepaidCity of Cimarron$597,836Loan RepaidCity of Dighton$200,000Loan RepaidCity of Ford$63,000Loan RepaidCity of Lindsborg$775,000Loan RepaidCity of Ottawa$1,087,541Loan RepaidTotal:$78,409,646$50,572,454