Energy (Utility Regulation)

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.