Wichita ? Black Hills Corp., which is buying Aquila Inc.’s natural gas assets in Kansas, wants customers in the state to help pay an extra $1 million a year in costs associated with the purchase.

While company officials said overall cost savings would keep customers from seeing much change in heating bills, state officials criticized the move, noting Aquila tried the same funding tactic with its own acquisitions over the years.

“You get into this sort of rolling nonsense, in my point of view, because the savings are so illusory,” said David Springe, chief consumer counsel of the Citizens’ Utility Ratepayer Board, a state agency that represents residential and small business utility customers.

Black Hills, based in South Dakota, has asked the Kansas Corporation Commission to approve its almost $143 million purchase of Aquila’s Kansas assets.

The Kansas operation is based in Lawrence and provide natural gas service to 106,000 customers, including residents and businesses in Lawrence.

Included in that price tag is a $48.15 million “acquisition premium,” which represents a bonus above the assets’ $94.5 million book value.

The company has asked for permission to recoup half of the premium through ratepayers over 25 years, or $963,000 a year, according to state officials.

During a public hearing Tuesday in Wichita, Black Hills Vice President Kyle White said the company would be able to operate the system more efficiently than Aquila had and wouldn’t be saddled with Aquila’s poor credit rating when borrowing money, which led to higher interest rates and other costs.

White said the company estimates it actually will save customers $1.64 million a year between 2009 and 2012 and keep its rates stable or even lower.

State Rep. Terry McLachlan, a Wichita Republican, was among those attending the hearing and questioned why customers should have to pay any of Black Hills’ costs for buying the assets.

“I’ve got good credit and I could borrow the moon – that doesn’t mean I should,” McLachlan said. “If I had someone to pick up my bills, I’d sure gamble to the moon.”

The Kansas purchase is part of Black Hills’ $940 million acquisition of Aquila’s assets, which also include operations in Colorado, Iowa and Nebraska.

Kansas City, Mo.-based Great Plains Energy Inc. has proposed buying Aquila’s electric operations in Missouri for $1.7 billion.

That acquisition also has gotten mired in questions over how much of the purchase price should come from ratepayers, with state regulators claiming customers could pay up to $80 million more a year.

The process also is on hold after members of the Missouri Public Service Commission and Aquila officials disclosed that they had private meetings on the proposal almost a year ago before the plan was submitted for approval.