Customers of Kansas’ largest natural gas utilities will see their bills rise slightly next month after regulators approved a rate increase Thursday.
Kansas Gas Service, which serves almost 650,000 residential customers, filed a request with the Kansas Corporation Commission this spring to increase rates. The requested rate increase would have boosted the utility’s revenue by $58.1 million annually.
But following negotiations with consumer advocates and staff of the KCC, which regulates monopoly utilities, Kansas Gas Service agreed to a $35 million increase. For the average customer, that means monthly bills will increase by $3.83.
The three-member Kansas Corporation Commission approved the negotiated rate increase Thursday with little discussion. It takes effect Nov. 1.
Kansas Gas Services’ original request would have pushed bills even higher and created a tiered rate system, imposing a larger percentage increase on customers who use less gas. Customers with lower usage would have seen a 10.41% hike, or average $6.71 per month. Larger customers’ rates would have increased by 8.25%, resulting in an increase of $9.48 on their bills.
At a public hearing on the requested rate increase in June, customers decried the requested rate increase as unnecessary and unconscionable.
The Citizens’ Utility Ratepayer Board, which advocates for residential and small commercial utility customers, recommended a much smaller increase in rates, to bring in $10.7 million. Staff of the KCC recommended $31.7 million before reaching the $35 million settlement.
Staff of the KCC said in a release that the settlement “strikes the proper balance between KGS’ desire for reasonable assurances that it will meet its financial obligations and the need to keep rates as low as possible for customers while still providing reliable natural gas distribution service.”
In an email, KGS spokeswoman Dawn Tripp said the new rates would allow the utility to “recover upfront investments we made to continue providing safe and reliable service Kansans depend on.”
“We recognize that any increase in prices can be challenging for our customers,” Tripp said. “We encourage them to contact us for payment options if they have difficulty paying their natural gas bill.”
Information about financial assistance can be found at kansasgasservice.com/cares.
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Story via Kansas Reflector
