Natural Gas Rates on the Rise--But Not As Much As Expected

Paul Fleet

 

What could have been a $4.54 per month rate increase, was reduced to a $1.25 a month increase for Kansas Gas Service customers as a result of a settlement agreement approved by the Kansas Corporation Commission (KCC) in November.

At the urging of AARP Kansas, hundreds of Kansans contacted the KCC to ask the commission not to approve the higher increase. The company had asked for a $35.4 million base rate increase, but instead received a $15.5 million increase.

In addition to the base rate increase, the company had also sought to increase the fixed service charge from $15.35 per month to $20.45, and it proposed what is called a Cost of Service Adjustment (COSA) which would make future rate increases automatic, bypassing the thorough audit and review of rate cases. Both proposals were of major concern for AARP and Kansas Gas Service customers and neither was included in the settlement agreement.

Kansas Gas Service Company provides service to approximately 635,000 customers in 360 Kansas communities. The new $1.25 per month rate increase went into effect on January 1, 2017.