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.
HERDER’S equanimity about the situation belies his frustration. Clearly, he said, some sort of “market manipulation” occurred to cause the price of natural gas to increase so dramatically.
In a call to U.S. Sen. Roger Marshall, Herder said Friday he was told there’s no recourse when it comes to addressing the utilities themselves.
Though that may be true, officials in Mulberry will be going on the record for calling out the energy giants.
On Tuesday, Mulberry filed a lawsuit against BP Energy, saying it took advantage of townsfolk for its natural gas charges that went from $2.98 a unit on Feb. 9 to $329 a unit Feb. 13-16. By month’s end, the price had returned to $2.48.
The lawsuit states that the citizens of Mulberry “have been subjected to profiteering during an extreme weather disaster, in the form of exorbitant natural gas pricing.”
Located in rural Crawford County, Mulberry buys its gas through Utility Gas Management, which uses BP.
Mulberry, population 500, is requesting BP pay its $40,459 gas bill as well as retroactively set its gas hikes to no more than 25% above the $2.98 rate set on Feb. 9, before the rates began to increase.
PRESIDENT JOE Biden is eagerly awaiting Congress to pass his economic stimulus plan dubbed the American Recovery Act.
In the last round of stimulus, 38% of Americans used their $600 stipends to go toward rent or utility bills. This round includes up to $1,400 in relief for individuals.
It can’t come soon enough.
