Utility regulators have a deal on the table that will increase natural gas prices for many Kansas residents, but it will be less than what the state’s largest natural gas provider has proposed.
Kansas Gas Service filed the rate case with the Kansas Corporation Commission in March, asking the regulator for permission to increase base rates.
How much would tariffs increase?
If the Kansas Corporation Commission approves the proposed settlement, net revenue for Kansas Gas Service would increase by $35 million.
The original KGS proposal called for a net revenue increase of $58.1 million. KCC staff recommended a net increase of $31.7 million, while the Citizens’ Utility Ratepayer Board recommended $10.8 million.
“The established revenue requirement is supported by substantial, substantive evidence and results in fair and reasonable rates,” the parties unanimously declared of the $35 million net increase.
No A/B tariffs for private customers
As part of the proposed settlement, Kansas Gas Service agreed to withdraw its proposal to implement a dual rate structure for residential customers.
The plan would result in small residential customers paying a relatively lower monthly service fee and a higher delivery fee, while large residential customers would have a relatively higher monthly service fee and a lower delivery fee.
A KCC economist had stated that the A/B tariff proposal “favors customers with particularly low or high consumption (end customers) at the expense of customers with average consumption behavior (customers in the middle of the distribution).”
What does this mean for my gas bill?
Public documents did not detail what the proposed settlement would mean for average monthly gas bills for residential and commercial customers, but a KCC press release included figures for residential customers.
“If the settlement is approved, residential customers with average usage (72.23 Mcfs) would see an increase in their monthly bill of approximately $3.83 per month, or $42.02 per year,” KCC’s press release states. “The company has withdrawn its proposal to implement two different rate structures based on high or low usage. This proposal would have resulted in an increase in residential rates of approximately $6.71 per month for customers consuming 73 Mcfs or less per month, or $9.48 more per month for residential customers with higher usage.”
What’s next?
The KCC was originally scheduled to hold a three-day evidentiary hearing beginning on Monday.
With a settlement proposal now on the table, the three KCC commissioners voted Thursday to meet in Topeka on Tuesday for a one-day hearing instead.
The KCC must make a decision by October 25. If approved, the new tariffs are expected to come into force on November 1.
Jason Alatidd is a statehouse reporter for the Topeka Capital-Journal. He can be reached by email at [email protected]. Follow him on X @Jason_Alatidd.
