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VARIABLE INTEREST ENTITES (Notes)
3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entity Disclosure VARIABLE INTEREST ENTITY
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. On November 18, 2022, the securitized financing was complete. 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. 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.
The following table summarizes the impact of KGSS-I on our consolidated balance sheets, for the periods indicated:
March 31,December 31,
20242023
(Thousands of dollars)
Restricted cash and cash equivalents$9,963 $20,552 
Accounts receivable4,694 5,133 
Securitized intangible asset, net286,234 293,619 
Current maturities of securitized utility tariff bonds28,183 27,430 
Accounts payable118 394 
Accrued interest2,757 7,207 
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs of $5.2 million and $5.3 million, respectively
268,102 282,506 
Equity1,731 1,768 

The following table summarizes the impact of KGSS-I on our consolidated statements of income, for the periods indicated:
Three Months Ended
March 31,
20242023
(Thousands of dollars)
Operating revenues$11,671 $11,933 
Operating expense(111)(110)
Amortization expense(7,385)(7,089)
Interest income188 75 
Interest expense(4,327)(4,809)
Income before income taxes$36 $—