A small Kansas town is fighting natural gas prices charged by BP Energy during last month’s extreme cold, accusing the multinational oil and gas giant of “unconscionable profiteering” under state statute. A lawsuit filed Tuesday by the city of Mulberry says BP inflated prices for natural gas from $2.98 per mmbtu on Feb. 9 to $329.615 from Feb. 13-16. The city is asking for bills to be recalculated at a reasonable rate. Jim Zakoura, an attorney representing the city in the lawsuit, said BP took advantage of Mulberry and other Kansas towns that operate their own utilities at a moment when residents needed natural gas to heat their homes and stay alive.
Source: The Iola Register

Humboldt City Administrator Cole Herder breathed a sigh of relief last week when Gov. Laura Kelly signed legislation that issued $100 million to help municipalities pay sky-high utility bills incurred from the arctic blast in February. Because cities can neither take out commercial loans nor go into debt, they have little latitude but to pay their bills in a timely manner. Humboldt has been warned to expect a bill for $1.6 million for natural gas usage during the Jan. 20 to Feb. 20 billing cycle. Typically, the charge is $35,000. The city’s entire annual budget for natural gas is $375,000. The state loan program will allow municipalities affected by the rate hikes to apply for 10-year loans at a 2% interest rate. Herder hopes to apply for a loan to cover the full $1.6 million. Over 10 years, payback would be about $163,200 a year and require a 60% increase in residents’ utility bills.
Source: The Iola Register