A Win for Customers of Kansas Gas Service Company

Paul Fleet

 

The Kansas Corporation Commission (KCC) has ordered Kansas Gas Service to refund money to its customers as a result of savings it received from the Federal Tax Cuts and Jobs Act (TCJA).  Kansas Gas Service customers will receive a one-time credit to their gas bill of $21.06 as a result of the order.

The order, issued by the KCC on February 25, 2019, instructed Kansas Gas Service to return approximately $16.6 million to its customers.  According to the KCC news release, the TCJA reduced the corporate tax rate from 35% to 21% in January of 2018. The KCC required utilities to track their savings resulting from the tax cut and maintain those funds in a separate interest bearing regulatory account pending KCC review.

In its rate case request filed in June 2018, Kansas Gas Service had asked the KCC for permission to keep the accrued tax savings to offset its cost of service. However, according to the news release, the KCC determined that was not in the public interest and the order states,"KGS has provided no evidence that returning the regulatory liability to its customers will endanger KGS's health and viability in providing reliable, sufficient and efficient service."