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You are at:Home » Kansas Town Wins First Round in Lawsuit Over Natural Gas Prices
Kansas Town Wins First Round in Lawsuit Over Natural Gas Prices

Kansas Town Wins First Round in Lawsuit Over Natural Gas Prices

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By admin on November 19, 2022 Insurance

Residents of a small metropolis in southeast Kansas could proceed a lawsuit that claims power utility BP gouged them with hefty value will increase for pure fuel throughout freezing climate final yr, a choose has dominated.

A Crawford County choose on Feb. 9 dismissed a movement by the British multinational oil and fuel firm to finish the lawsuit and stated residents of the city have the fitting to sue BP, previously referred to as British Petroleum, The Wichita Eagle reported.

Mulberry is contesting about $51,000 of a pure fuel invoice it obtained final February, a hefty quantity for the Crawford County city of lower than 500 residents.

BP, which on Feb. 9 introduced a 2021 revenue of $12.8 billion, didn’t reply to requests for remark, The Eagle reported.

The choice got here a day after the Kansas Corporation Commission approved Kansas Gas Service’s decision to extend costs for its clients for the following 5 to 10 years to pay $366 million of winter storm prices from the freeze.

Mulberry residents purchase their fuel by way of their metropolis utility and never Kansas Fuel Service, so Wednesday’s ruling may present a manner for patrons of any utility to sue for aid underneath the Kansas Shopper Safety Act, stated James Zakoura, an legal professional for Mulberry and its municipal fuel customers.

The town authorities and 4 named residents allege within the lawsuit that BP violated the anti-profiteering part of the act that limits value will increase on shopper items to 25% throughout emergencies.

Mulberry’s fuel value on Feb. 9, 2021, was $2.98 per million British Thermal Models. The worth rose to $329.60 per million BTU from Feb. 13 to Feb. 16, when town stopped shopping for fuel. On Feb. 17, the worth hit $622.79.

BP officers argued that the 4 people ought to be dismissed from the lawsuit as a result of it bought fuel to town, not residents. The residents countered that the fuel went by way of town however they’re they the precise customers.

Decide Lori Bolton Fleming, the chief choose for Crawford, Cherokee and Labette counties, agreed saying dismissing the person residents’ claims would create a scenario during which any provider who makes use of a distributor fairly than having contracts with particular person customers would be capable of keep away from legal responsibility underneath the state’s Shopper Safety Act.

“Such an interpretation is solely not in keeping with the acknowledged coverage of the KCPA,” Fleming stated.

The town authorities was dismissed as a plaintiff within the lawsuit however could possibly be added again underneath the Uniform Business Code, which bans “unconscionable” enterprise practices, stated legal professional Lee Smithyman.

He stated permitting the lawsuit to proceed offers the plaintiffs entry to paperwork that would clarify why pure fuel costs went up a lot final yr.

Copyright 2022 Related Press. All rights reserved. This materials will not be printed, broadcast, rewritten or redistributed.

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