<figure>
 <img src="https://media.eaglewebservices.com/public/2021/3/1614898551271.png" alt="Gov. Laura Kelly says during a briefing Wednesday at the Statehouse that federal regulators need to figure out why companies charged such high prices for natural gas. (Sherman Smith/Kansas Reflector)" />
 <figcaption>Gov. Laura Kelly says during a briefing Wednesday at the Statehouse that federal regulators need to figure out why companies charged such high prices for natural gas. (Sherman Smith/Kansas Reflector)</figcaption>
 </figure>By SHERMAN SMITH <a href="https://kansasreflector.com/2021/03/04/mulberry-files-lawsuit-accusing-bp-energy-of-price-gouging-during-extreme-cold/">Kansas Reflector</a>TOPEKA — 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.<figure>
 <img src="https://media.eaglewebservices.com/public/2021/3/1614898625018.jpeg" alt="Jim Zakoura, an attorney involved in the city of Mulberry’s legal fight over high natural gas prices, says BP Energy illegally profited during from a disaster. (Submitted)" />
 <figcaption>Jim Zakoura, an attorney involved in the city of Mulberry’s legal fight over high natural gas prices, says BP Energy illegally profited during from a disaster. (Submitted)</figcaption>
 </figure>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.“This is pure and simple 
price gouging and profiteering in the sale of a critical life product, 
in a life and death situation,” Zakoura said. “It is not only unlawful 
conduct under Kansas law but also shows a complete disregard for the 
people of Kansas.”A spokeswoman for BP said 
the company was aware of the lawsuit filed in Crawford County District 
Court and declined to answer questions.Mulberry is a southeast 
Kansas town along the Missouri border with a population of about 500 
people. Like dozens of other small Kansas towns, the city distributes 
natural gas for heating to residents, businesses, schools, nursing homes
 and medical care facilities. Monthly gas bills for February would be 10
 times higher than usual because of the higher prices.The city pays a monthly 
service fee to Utility Gas Management to procure contracts to acquire 
natural gas, but the prices are dictated by producers like BP, which has
 headquarters in Houston.<figure>
 <img src="https://media.eaglewebservices.com/public/2021/3/1614898655424.png" alt="" />
 <figcaption></figcaption>
 </figure>Between Feb. 1 and Feb. 9,
 when weather forecasts began predicting record chills from Canada to 
Texas, the price BP charged for natural gas increased from $2.54 to 
$2.98. Over the next four days, BP’s prices for Mulberry, according to 
the lawsuit, increased to $4.05, $9.64, $44.80 and $329.615.As temperatures warmed, 
prices rapidly fell from their peak rate to $8.75, and then continued to
 decline. By the end of February, the cost was back down to $2.485.Gov. Laura Kelly declared a
 state of emergency on Feb. 14, triggering provisions of the Kansas 
Consumer Protection Act that restrict prices from rising more than 25% 
above the usual rate.Court documents contend 
the residents of Mulberry “have been subjected to profiteering during an
 extreme weather disaster, in the form of exorbitant natural gas 
pricing.” The lawsuit asks for the city to be repaid $40,459.48, and 
that rates be set no higher than $3.725, a 25% increase from the $2.98 
price on Feb. 9.Rep. Ken Collins, 
R-Mulberry, said he wasn’t familiar with the lawsuit but that it was 
important to find out why natural gas prices spiked.“If there was actual price
 gouging involved, the proper authorities need to know about it,” 
Collins said. “It really has been a big burden on Mulberry and other 
cities with municipal utilities. And I generally think it’s good for 
cities have municipal utilities, but when things like this happen, it 
kind of makes me wonder.”The&nbsp;Federal Energy 
Regulatory Commission announced Feb. 22 it would investigate wrongdoing 
in the sale of natural gas during the extreme cold. Kelly has urged 
regulators to look into allegations of price gouging.“Because yeah — how can 
you let these companies charge that kind of money in a disaster 
situation?” the governor said during a news briefing Wednesday at the 
Statehouse. “That’s what we’re asking for them to find out. What 
happened here? What needs to be done to ensure that it never happens 
again?”Lawmakers on Wednesday 
fast-tracked new legislation that provides $100 million in low-interest 
loans to Kansas municipalities that are struggling with natural gas 
bills. The program, which the governor signed into law, was viewed as 
necessary because some towns risked losing access to natural gas within 
days if they don’t pay bills they can’t afford.The loans would mean 
residents all over the state would be paying for February price hikes 
for the next 10 years, as opposed to having thousands of dollars added 
to their current bill.Sen. Alicia Straub, 
R-Ellinwood, opposed the legislation because the problem, she said, 
because consumers shouldn’t be held responsible for problems with market
 rates.“I feel like I am being 
put to the task of negotiating the rate for the consumers,” Straub said.
 “First of all, I’m not paid to do that. Second of all, I wasn’t elected
 to do that. My job is to protect the end consumer, the constituent, and
 I think there’s a better way to do that.”Sen. Tom Holland, 
D-Baldwin City, warned that without some sort of intervention in the 
markets, “we can be perpetually held hostage.”“I may have been born 
during the night, but I wasn’t born last night,” said Sen. Tom Holland, 
D-Baldwin City. “I am continually perplexed when I see examples of both 
federal and now, once you get to the state level, where we have moral 
hazards and we’re rushing to bail out the energy companies.”Sherman Smith has written award-winning news stories about the instability of the Kansas foster care system, misconduct by government officials, sexual abuse, technology, education, and the Legislature.

Kan. town files suit accusing BP of price gouging during extreme cold