Kansas Gas Service agreed to impose a smaller rate hike on customers, increasing bills by an average of $3.83 per month, state regulators announced Thursday.
The deal, which the company and state regulators struck last week, needs approval by the Kansas Corporation Commission. The state agency announced Thursday it would hold a hearing on the proposal next week.
Kansas Gas Service, which serves almost 650,000 residential customers, filed its periodic request with the KCC to increase rates this spring. The KCC, which regulates monopoly utilities, has been hearing testimony from the company, regulatory staff and consumer advocates.
The company initially asked to create a two-tiered rate system based on how much gas customers used. Customers who used less than 73,000 cubic feet of gas would have seen a 10.41% hike, which would represent an average increase of $6.71 per month. Kansas Gas Service proposed a smaller rate hike of 8.25% on larger customers. The company said that would result in an average $9.48 increase in monthly bills for major users.
KGS’s agreement with regulators would not impose a second rate tier, but rather impose the average $3.83 increase for all customers.
The hikes KGS requested would have brought in $58.1 million annually for the company from customer bills. But KCC staff argued the company could only justify a $31.7 million increase in customers’ rates. The Citizens’ Utility Ratepayer Board, which advocates for residential and small commercial customers, recommended only a $10.7 million rate hike from customers’ bills.
In a statement, KGS spokeswoman Dawn Tripp said the company is “committed to keeping rates as reasonable as possible.”
“This request is necessary to recover the investments made to maintain a safe and reliable pipeline system,” Tripp said. “Thanks to consistent long-term investments, we have a 999% reliability rate, which means our customers can depend on natural gas for their daily needs, even during challenging weather.”
Commissioners will hear testimony on the proposed agreement Tuesday at 10:30 a.m. at the KCC office in Topeka. They can approve, reject or modify the agreement and need to issue an order on natural gas rates by Oct. 25.
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Story via Kansas Reflector
