KGSS-I is a special-purpose, wholly owned subsidiary of ONE Gas that was formed for the purpose of issuing securitized bonds to recover extraordinary costs incurred by Kansas Gas Service resulting from Winter Storm Uri. KGSS-I’s assets cannot be used to settle ONE Gas’ obligations and the holders of the Securitized Utility Tariff Bonds have no recourse against ONE Gas. The Securitized Utility Tariff Bonds have a scheduled final payment date of August 1, 2032. See Note 5 for additional information about the securitization financing.

KGSS-I is considered to be a variable interest entity. As a result, KGSS-I is included in the consolidated financial statements of ONE Gas. No gain or loss was recognized upon initial consolidation.


	March 31,		December 31,
	2026		2025
	(Thousands of dollars)
Restricted cash and cash equivalents	$	11,639	$	23,107
Accounts receivable	4,403		4,463

Securitized intangible asset, net	226,359		233,786
Total assets	$	242,401	$	261,356
Current maturities of securitized utility tariff bonds, net of issuance costs	31,404		30,566
Accounts payable	106		136
Accrued interest	2,217		5,894
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs $4.1 million and $4.3 million, as of March 31, 2026 and December 31, 2025, respectively	206,970		223,020
Paid-in capital	1,680		1,680
Retained earnings	24		60
Total liabilities and equity	$	242,401	$	261,356


	Three Months Ended
		March 31,
		2026		2025
		(Thousands of dollars)
Operating revenues		$	10,977	$	11,637
Operating expense		(111)		(110)
Amortization expense		(7,427)		(7,694)
Interest income		137		148
Interest expense		(3,540)		(3,944)
Income before income taxes		36		37
Income taxes		—		6
Net income		$	36	$	43