Drop you thermostats - Residential $40 gas bills could go to $1,000
La Cygne restaurants are among the local businesses closed at least for today (Feb. 17) to heed a natural-gas conservation request issued from a special city council meeting yesterday (Feb. 16), the request's intent that gas consumption be prioritized for citizens' "health and welfare" within their homes.
Facebook pages for Family Cafe, Lucy's Bar and Grill, and Simple Simon's all note the temporary closure. Nana Jo's is also closed. The kitchen at Casey's General Store, however, is open.
Those closures come in response to an emergency gas order distributed yesterday afternoon following the noon-hour special meeting. That order can be found in full on the La Cygne Facebook page at www.facebook.com/<http://www.facebook.com/>CityofLaCygne.
The crisis is a combination of potential natural gas price and availability in light of the two-week Arctic cold wave--Tuesday morning lows at the five Linn County weather-measuring stations were anywhere between minus 12-16 degrees, the coldest since two nights of minus 20+ readings on Dec. 22-23, 1989.
At yesterday's meeting, Jodi Wade, city clerk, explained that information received late last week by the Kansas Municipal Gas Agency (KMGA) showed their Friday “locked-in” pricing on the free market to purchase natural gas was $325 per MMBTU (one million British thermal units). KMGA had been purchasing gas at $3 per MMBTU.
"This is uncharted waters for everybody," she said.
KMGA last Friday purchased $30 million for a four-day period ending yesterday (Feb. 16). She said KMGA was required to make a $1 million deposit "to keep flowing these four days." KMGA's annual budget, she said, is $8-to-9 million.
La Cygne buys its gas through KMGA, and though city leaders hope a best-case scenario might be to pay $70 per MMBTU, Dan Nasalroad, public works superintendent, said it would be no guarantee.
"$325 is what they bought. There's no guarantee they'll absorb down to $70 per MMBTU."
Today's posted index price for Panhandle Eastern Pipeline, the transport line from which La Cygne channels its gas supply at Henson, is $129.39 per MMBTU.
Added Wade, "Don't expect if the temperature comes up at the end of the week that these prices are going to go down" because of depleted reserves for the cold wave that has gripped much of the United States.
Noted in yesterday's emergency order, the city's cost for a month's supply of 12,000 MMBTU at $2.628 would be $31,536. At the $325 level, the city's cost would be $3.9 million.
By comparison, La Cygne's total 2021 pass-through gas budget as approved last summer is just under $1.9 million.
Faced with a choice yesterday of whether to shut off its gas supply and set up warming centers or continue to buy gas and face what he labeled as price gouging, Councilman Jerome Mitzner said the city should be committed to maintaining a gas supply to citizens.
"But how are we going to pay for this?" with one possibility, he said, the floating of a utility bond "until this all gets sorted out," a move confirmed by Wade.
Referring to information received from Doug Barlet, Linn County emergency management coordinator, Nasalroad reported that some Kansas cities have chosen "to close spigots because of cost and open warming shelters. They have no choice. They can't pay the $325 per MMBTU."
Gas shutoff would require an alert to residents and businesses to drain their water pipes to prevent freezing.
According to the Kansas Corporation Commission, Nasalroad said, natural gas purchasing (such as by KMGA) is an unregulated market and "we've already purchased what we've agreed to" on a previously-agreed contract.
Added Wade, "If exceeded, then they're out on the free market's daily index. That's where prices were rising during the day on Friday."
Mayor Debra Wilson feels that government entities will step in. Gov. Laura Kelly issued a state of emergency for Kansas on Sunday. The Linn County Commission this morning issued a county state of emergency. And Jackie Messer, county public works coordinator, told commissioners of a possible Federal Emergency Management Agency emergency declaration that would free up federal funding.
Agreed Nasalroad, "I can't imagine [governments] are going to let these towns shut it off."
He warned, though, what even a 2,300 percent increase for a "price break" to $70 per MMBTU--if KMGA could even afford to do that--would mean for La Cygne gas customers.
"We could eventually be shutting off a lot of customers. This is a catastrophic event for people," Nasalroad said.
In discussing usage, Nasalroad said the city's largest natural gas consumers include Industrial Park industries (Harsco and U.S. Minerals) and Beachner Grain, Inc., all for drying purposes, as well as Whistle Ready-Mix. Other big consumers are the elementary school, which has been closed since Friday, and the public library, open on a limited basis today, according to a Facebook post by Chris Waddell, director.
Nasalroad questioned what rights the city might have to ask businesses to shut down and/or turn down thermostats.
Because La Cygne is the supplier, Burton Harding, city attorney, opined that the city can "put reasonable restrictions on, as long as no one's singled out."
Wade confirmed this morning that the city reached out to Harsco, U.S. Minerals, Beachner Grain and Whistle Ready-Mix, asking them to close down or reduce their operations only to a health-and-wellness necessity, for example heat for office areas and restrooms.
"If they were high users for production, we asked them to stop their production."
She said, though Caseys' kitchen is all electric, they still received an explanation of the importance to conserve on usage.
Among restrictions, Harding said, could be usage limits. Wilson asked, "How would we make this happen?"
Aside from reading meters daily for consumption, Harding said that "it would be tough to impose fines."
A consensus was that corporations could assume the inflated prices, etc., as a cost-of-doing-business.
Harding said a "hybrid deal" could be to offer an 'x' amount for consumption, "and when it's gone, it's gone."
Added Wade, "Tell them this is the top. We can't go past that."
Echoed Nasalroad, "Once it's gone, it's gone."
Advised Harding, "The city can't bankrupt itself."
Wade said La Cygne has a filed water emergency plan--primarily for severe drought--that contains such procedures to establish prescribed "levels and amounts," but was unsure of Harding's inquiry if gas carries such regulations.
Councilman James Thies said to let businesses know how a mandatory shutdown in order to serve only residential "health and welfare" would affect them.
Added Mitzner, "And let citizens know that a previous $40 gas bill could now be $1,000."
Nasalroad added that the city request homes to drop their thermostat reading--"Don't put it all on businesses."
Maybe Mitzner summarized the city's quandary, "I don't think there is a good answer."
NEWS
Commissioners review 900 Road issues with engineer
During the meeting on Monday, Dec. 16, the Linn County Commissioners in attendance spoke with Chad McCullough, a representative of Kaw Valley Engineering, on the issues with the 900 Road project that resulted when a portion of the road caved in following spring flooding. C.... [More]
Emotions flare at ‘spirited’ Parker meeting
Disagreements arise between police force, president pro tem Spirit was high at last Thursday’s monthly Parker council meeting--but not of the Yuletide variety. Emotional disagreements occurred between the municipality’s police department and the two elected... [More]
County Clerk reads statement on discrepancy reported by auditor
Almost at the end of the commissioners meeting on Monday, Dec. 16, commissioners asked County Clerk David Lamb to read into record the statement provided by Mark Hagen in regard to information they were given during the executive session last week. Lamb read, “Last week,... [More]
More News
- Boil Water Advisory Issued for the City of Blue Mound, Linn County
- Lettuce, lettuce for everyone
- Local food drives to aid Linn County organizations and families
- Commissioner questions process of clerk’s resignation, appointment
- La Cygne leaders anticipate quotes
- Commissioners review option for county website
- SPECIAL: Lamb resigns County Clerk position
- Deputy extinguishes fire at Prairie View
SPORTS
Jayhawk Linn girls’ basketball wins Linn County Tournament
The Jayhawk Linn girls’ basketball team traveled to Prairie View on Dec. 10, 12-13 to compete in the annual Linn County Tournament. The Lady Hawks played Pleasanton, Osawatomie and Prairie View during those days and went 3-0 to capture the championship this season. Individual... [More]
Pleasanton boys’ basketball places second at Linn County Tournament
The Pleasanton boys’ basketball team traveled to Prairie View on Dec. 10, 11-12 to compete in the Linn County Tournament. The Jays did well and went 2-1 before falling to Osawatomie in the championship on Dec. 13 to place second overall. Individual stats for Jayhawk and... [More]
More Sports
- Prairie View varsity girls’ wrestling compete at Spring Hill
- Jayhawk varsity girls’ wrestling start season at KanOkla tournament
- Prairie View football sets multiple school and individual records
- Hume teams lose openers at Appleton City
- All County Volleyball team 2024
- Three Rivers League releases 11 man All League football team
- Jayhawk volleyball has a great season and earns four unanimous all league selections
- Prairie View volleyball celebrates record setting season of team and individual accomplishments
COMMUNITY
Kellstadt opens new business in Mound City
After 29 years in health care practice, most recently at CHCSEK, Rhonda Kellstadt, APRN, decided it was time to step away from the more regimented clinic setting and branch out in a different direction. “It was just time for a change,” stated Kellstadt, who recently... [More]
PVHS holds Career Day
Prairie View High School held their 7th Annual Career Day on Friday, Dec. 6. High school students were able to attend career sessions with representatives from several area companies, colleges and technical schools and programs. Those representatives included companies such... [More]
Powells named BC Farm Bureau Farm Family of the Year
Zach, Abbie, Jacksen, Masen and Colter Powell reside in rural Mapleton, Kan., not far from the Linn County line. For those in 4-H or associated with the Linn County Fair, Abbie Powell is a familiar face as she currently serves as the Marais des Cygnes Extension District Director,... [More]
More Community
- Across Kansas on a spiritual journey
- Prairie View FFA wins 2024 East Central District Dairy Cattle CDE
- JLHS cheerleaders to perform in Pearl Harbor Memorial Parade
- Regalado named as new director for Hive Library
- Taco Dinner and auction set for Oct. 19 to aid Ray of Hope
- Handcart donated to museum restored by local craftsman
- Handcart donated to museum restored by local craftsman
- New phone/device repair business opens in Pleasanton