HB 2435 Kansas House · 2025-2026 Regular Session

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.

HB 2435 allows Kansas natural gas utilities to defer depreciation and carrying costs for new infrastructure (like pipelines or equipment) into a regulatory asset instead of immediately recovering them through customer rates. The bill establishes a temporary "interim rate adjustment" mechanism, letting utilities recover these deferred costs over 20 years via customer bills, with a 60-month limit unless a new rate case is filed. Utilities must notify the State Corporation Commission before deferring costs and can only recover amounts that don’t exceed 20% of their base revenue. This directly affects Kansas natural gas utilities operating under the State Corporation Commission’s oversight, changing how they account for and recover investments in new infrastructure.
Bill status signed all 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
House Passage
Feb 2026
Senate Passage
Mar 2026
Signed into Law
Apr 2026
Introduced Jan 13, 2026 Signed Apr 9, 2026
Maddy AI version diff · 1 comparison

What changed between versions

As Introduced Enrolled · 6 edits · Apr 9, 2026
MODERATE
The bill was substantially rewritten to shift its focus from a general deferral of depreciation costs to a specific mechanism for recovering investments in gas system reliability. The new version introduces a 'Gas System Reliability Surcharge' (GSRS) with strict definitions for eligible infrastructure, such as safety upgrades and obsolete facility replacements, and establishes a 90-day timeline for the commission to approve rate changes.
Scope change
The bill's scope narrowed from a broad infrastructure availability act to a specific reliability surcharge program, while adding detailed definitions for eligible projects and system security.
SCOPE

The bill's title and summary were changed to focus on gas system reliability surcharges and plant recovery rather than general regulatory asset deferrals.

DEFINITION

New definitions were added for 'GSRS', 'eligible infrastructure system investments', 'obsolete facility', and 'system security' to clarify exactly what projects qualify for the surcharge.

TIMELINE

The timeline for the commission to issue an order on a rate change petition was shortened to 90 days, down from the previous 120 days.

REQUIREMENT

Provisions allowing utilities to defer depreciation expenses and carry costs for all new plant were removed and replaced with a specific surcharge mechanism.

New requirements mandate that utilities submit proposed rate schedules and serve specific boards when filing petitions to establish or change the surcharge.

ELIGIBILITY

Eligibility criteria were expanded to explicitly include investments for system security (cyber and physical) and facility relocations due to public works, while excluding projects that directly connect new customers.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
13
Key actions
8
Committee
4
Apr 9, 2026
Signed into law
Approved by Governor on Monday, April 6, 2026
lower
Mar 19, 2026
Upper · Passed
Final Action - Passed; Yea 28, Nay 12
upper
Mar 18, 2026
Upper · Passed
Committee of the Whole - Be passed
upper
Mar 10, 2026
Upper · Passed
Committee Report recommending bill be passed by Senate Committee on Utilities
upper
Feb 25, 2026
Committee
Referred to Senate Committee on Utilities
upper
Feb 24, 2026
Introduced
Received and Introduced
upper
Feb 19, 2026
Lower · Passed
Final Action - Substitute passed; Yea 115, Nay 7, Absent 3
lower
Feb 18, 2026
Lower · Passed
Committee of the Whole - Substitute bill be passed
lower
Feb 18, 2026
Lower · Passed
Committee of the Whole - Committee Report be adopted recommending substitute bill be passed
lower
Feb 16, 2026
Lower · Passed
Committee Report recommending substitute bill be passed by House Committee on Energy, Utilities and Telecommunications
lower
Jan 14, 2026
Committee
Referred to House Committee on Energy, Utilities and Telecommunications
lower
Jan 13, 2026
Introduced
Introduced
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.