A bill that could ease the way for sale of a natural gas company is still alive in the Kansas Legislature, and Sen. Jim Barnett said he hopes that a version of the bill can be passed by the end of next week.
The city of Neosho Rapids and Black Hills Energy have agreed the private company will purchase the city-owned gas company for $64,664, pending voter approval in a special election scheduled on April 21.
The city will be responsible for paying for the special election, from 7 a.m. to 7 p.m. in the Community Center. However, Black Hills, as purchaser, is required by statute to reimburse the city for those costs, Howard said.
The city long has contracted with Black Hills to install new meters, repair malfunctions, and perform other chores that require equipment and training the city cannot afford to buy.
City officials and Jesse Howard, who takes care of the remaining tasks for the city, agree that soon it will not be economically feasible for the city to own the company. Council members on March 11 voted unanimously to approve the sale.
The challenge, Howard said, will be to draw out enough voters to meet state requirements for approval.
Howard said in an earlier interview that a majority of qualified voters listed on the books at the Lyon County clerk’s office must be reached for the ordinance to be approved.
The city’s problem is that approximately 30 of the 155 “qualified” voters either have died or moved from Neosho Rapids and are no longer able to vote. A minimum of 78 voters must go to the polls and vote “yes” for the measure to pass.
The Legislature, however, can resolve the problem if it passes a bill to change the majority requirement to a simple majority before April 12. The bill has passed through both houses and now is under conference committee consideration.
Barnett said the measure passed the Senate 40-0 on Feb. 5. It passed in the House on March 19.
The bill would allow a third-class city to sell a public utility by simple majority vote, rather than by majority vote of the total qualified voters.
When the bill reached the House of Representatives, he said, an amendment was added to help resolve a problem with a gas service company that serves Americus.
The company apparently is owned by a man who also owns several other small gas companies. Each company is set up under a different name, and none of them are large enough to come under regulation by the Kansas Corporation Commission. As a result, the companies can charge rates often far greater than those charged by larger gas companies. The amendment would bring those smaller operations under KCC scrutiny.
Adding the amendment to help Americus, however, slowed the progress of the bill for Neosho Rapids.
“I spoke with the chair of the conference committee in the Senate and I think both issues can go through,” Barnett said, “but we have a utility bill mixed in with an election bill is basically what we have. So I think the conference committee is likely going to separate those issues.”
Barnett said that conference committees likely will meet through Tuesday, with senators and representatives returning to regular session on Wednesday to handle the conference committee reports. He expects that, by then, the utility regulation bill that affects Americus will be separated from the election bill that affects Neosho Rapids.
“Of course, it’s my hope that both pass,” Barnett said.