Tag Archives: gas

Missouri lawmakers pass gas tax hike

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JEFFERSON CITY, Mo. (AP) – Republican lawmakers in Missouri have passed a bill to raise the gas tax for the first time in decades.

The GOP-led House on Tuesday voted 104-52 to gradually raise Missouri’s 17-cent gas tax to pay for road and bridge maintenance. If signed by Republican Gov. Mike Parson, the measure would raise the tax by 2.5 cents a year until it hits 29.5 cents per gallon in 2025. Drivers could get a refund if they save their gas receipts.

Some GOP lawmakers argued the tax hike will impact poor families the most.

MO House committee endorses proposed gasoline tax increase

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JEFFERSON CITY, Mo. – A Missouri House committee unanimously endorsed a proposal to increase the state’s gasoline tax.

The House Transportation Committee’s vote on Monday sends the measure to the full House, where some Republicans oppose raising taxes. If it’s approved, Missouri’s gasoline tax would increase 12.5 cents over five years, resulting in a tax of 29.5 cents per gallon. It would be the first increase since 1996.

House Speaker Rob Vescovo, a Republican from Arnold, has previously said he’s against tax hikes. The Senate approved the measure in March. Supporters say the state needs the revenue to repair deteriorating infrastructure.

Kansas to end cold weather rule halting utility disconnection

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TOPEKA, Kan. – The Kansas Cold Weather Rule is set to end Wednesday March 31. The measure was enacted to prevent electric and natural gas utility bills from disconnecting service from customers struggling to pay their bill. When the rule ends, customers behind on their bills will need to contact their utility provider to make payment arrangements.

Utility customers experiencing difficulty keeping up with their bills are encouraged to call their utility no later than Wednesday to be eligible for the Cold Weather Rule 12-month payment plan to catch up on overdue accounts. Under the plan, the customer must make an initial payment of 1/12 of the overdue amount, 1/12 of the bill for current service, the full amount of any disconnection or reconnection fees if any, plus any applicable deposit owed to the utility. The balance is billed in equal payments over the next 11 months, in addition to the regular monthly bill.

On December 15, 2020, the Commission extended an earlier order related to COIVD-19 that requires utilities under its jurisdiction to offer 12-month payment plans and waive late fees through the official end of the pandemic. That order is still in effect, but customers who have two previous broken pay agreements may not qualify. That is why it is important to make arrangements before the Cold Weather Rule ends.

Kansas creates loan program to help cities facing historically high utility bills

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HUMBOLDT, Kan. – “Typically we get billed about 35 thousand dollars a month. We’ve been advised that the estimate for February’s cost will be 1.6 million dollars,” explains Humboldt City Administrator Cole Herder.

It sounds like something you might hear in a movie or some other work of fiction. But for the City of Humboldt, this worst-case scenario is all too real.

“Our customers can’t stand that kind of a bill in one month. It just would bankrupt everybody,” says Herder. “That’s just unheard of. Our annual budget for the gas supply is about 375 thousand dollars. And we budget above what we think we’re gonna need.”

When the polar vortex hit the Midwest in February the price of natural gas skyrocketed.

Cities like Humboldt and Altamont usually see natural gas prices that are around $3 a unit. But Herder explains that the price hit more than $600 per unit before finally starting to come back down.

“There was problems with freeze offs in the pipeline. There were problems with demand. The Southwest Power Pool was asking for rolling blackouts over parts of 17 states for electric. Well, they use the same natural gas to generate electricity that we use here in Humboldt. When we heard of the high price, we put out a code red. We asked people to conserve even further. It’s really difficult to ask people to turn down their thermostat when it’s gonna be below zero for several days.”

Herder explains that the city sells natural gas to residents at the same price they purchase it at — aside from an administrative fee. And they don’t believe that the supplier or the gas pipelines were artificially driving the prices up either.

“The gas we buy is traded on an index, a daily index. So we believe that there were people profiting on the trading that never had contact with the gas,” says Herder.

The Federal Energy Regulatory Commission has started an investigation to see if there was market manipulation. But in the short term, cities like Humboldt are still facing bills that are multitudes higher than they can afford.

“One family that I looked up a bill, and their bill’s typically around… under 200 dollars. Their bill for this month would have been 5400 dollars,” says Herder.

But there may be some relief. On Wednesday, Kansas Governor Laura Kelly signed Senate Bill 88 — which creates a 100 million dollar low-interest loan program.

“This loan program was absolutely necessary for our cities to manage the surging utility costs,” Governor Kelly said in a press release. “It gives cities the immediate relief they need to avoid dire financial decisions while we pursue other, long-term solutions.”

The loan program would allow cities like Humboldt to get a loan from the state for what they owe on utilities from February, and pay it back over a period of ten years. That would help cities spread the cost to residents out over that same ten year period — having a smaller impact on their bills.

Herder hopes to see some federal relief come down the pipeline, likening the situation to a natural disaster. But until then, the loan program may be their only option.

“I can’t pay my 1.6 million dollar bill, when I only have 250 thousand dollars in reserves. I would be in violation of the law,” says Herder. “So, this legislation allows us to be legal and have a loan long enough to help us recover.”

Herder says the Humboldt City Council will have to approve applying for the loan — which is what he plans to recommend at a meeting on Monday, March 8th, if they don’t have a special meeting sooner.

He also recommends that Humboldt residents sign up for the Low Income Energy Assistance Program. You can learn more about that here: https://www.kansasgasservice.com/special-services/lieap. Thrive Allen County can also help residents apply.

 

Related stories:

https://www.koamnewsnow.com/sek-cities-looking-for-ways-to-cover-extremely-large-energy-bills/

https://www.koamnewsnow.com/southeast-kansas-city-working-to-avoid-gas-crisis-as-prices-skyrocket/

https://www.koamnewsnow.com/i/senator-seeks-probe-of-natural-gas-price-spikes-during-storm/

Missouri average gas prices hit 19-month high

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ST. LOUIS, Mo. – Missouri’s statewide gas price reached an average price of $2.48 per gallon for regular unleaded fuel. That price is five cents more compared to this day last week and is 34 cents more per gallon compared to this day last year.

Of the major metropolitan areas surveyed in Missouri, drivers in Springfield are paying the most on average at $2.55 while drivers in St. Louis are paying the least at $2.41 per gallon. The national average price for a gallon of regular unleaded is $2.74, which is six cents more compared to this day last week and 32 cents more than the price per gallon at this same time last year.

Drivers in Missouri are seeing the most expensive statewide pump price average since July 2019. This, as many southern refineries return to production after February’s winter storm. AAA forecasts the national gas price average to hit at least $2.80 in March. For motorists, that means they can expect continued increases of at least 5–10 cents in local markets until refinery operations are stable.

The latest Energy Information Administration (EIA) report shows demand for retail fuel rose to eight million barrels per day across the United States. While sales for gasoline are up week-to-week following the winter storm, demand levels remain below year-ago readings, which exceeded nine million barrels per day.

“March could bring the highest pump prices this year, barring any issues during Hurricane season,” said AAA spokesperson Nick Chabarria. “While the month is roaring in like a lion, by the end of it we could see some relief at the pump as refineries resume normal operations, especially if crude oil prices show signs of stability.”

Drivers in Missouri continue to pay some of the cheapest prices at the pump, raking 4th lowest in the country, according to AAA Gas Prices.

Spire offers assistance to pandemic impacted customers struggling to pay energy bill

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ST. LOUIS, Mo. – Missouri energy company Spire is offering two financial assistance programs to customers struggling because of the coronavirus pandemic.

Through March 31 or until funds are exhausted, the natural gas provider is offering up to $400 in assistance for Missouri customers who have been furloughed or experienced job or income loss and have an outstanding past-due balance on their Spire account.

Qualified customers enrolled in the program will automatically receive a $100 credit toward their past due balance. Over the duration of the program, customers can receive up to an additional $300 matched, dollar-for-dollar, when they make payments to reduce their past-due balance. There is no income cap for the program, but customers must complete an application and show that they’ve sustained a loss of income or job any time after March 1, 2020, as a direct result of the pandemic.

The second assistance program offered by Spire is an 18-month payment plan for customers impacted by the pandemic. Customers can enroll by paying 10% of their past-due balance.

“As the impact of the coronavirus pandemic continues, we know that many people are still in need of help,” said Scott Carter, president of Spire Missouri. “That’s why we’re committed to finding effective ways to support our most vulnerable populations.”

To apply or learn more about the new program or other ways Spire is helping customers impacted by the pandemic, visit SpireEnergy.com/Assistance

City of Miami tells residents to expect higher energy bills

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MIAMI, Okla. – The City of Miami, Oklahoma is reminding its electricity customers that bills will likely be higher. They say it’s because of using more electricity during cold temperatures. The city says the price per kilowatt hour has not changed.

The City of Miami says it has many solutions in place to support customers with utility bills. Customers can contact the customer service department at 918-542-6685 to discuss the Average Monthly Plan (AMP) or they can discuss a contracted plan with the City to pay out over the course of a specific number of months.

The Miami Public Utility purchases its power from the Grand River Dam Authority (GRDA). Like most energy producers in the region, GRDA was subject to massive increases in the cost of
natural gas it purchases due to demand and supply issues. However, officials say it is too soon to know the impact this will have on future bills.

In a statement provided to customers late Friday afternoon, GRDA believes “it would be imprudent for us to make estimates about GRDA’s net financial impact from the event”. The next GRDA board meeting is scheduled for March 10th, but they have stated it is looking more likely that it will be necessary to schedule a special board meeting to take any action on the response to the storm’s financial impact. GRDA maintains they have built a robust rate stabilization account and are in a solid cash position.