Kansas Gas Service customers will know in late October if their utility rate will increase, but there’s still time to comment on the proposed $58.1 million increase.
The Kansas Corporation Commission is accepting public comments through August 5. Comments can be submitted on the commission’s website, by mail, or by phone. More information.
If the rate-increase application filed by KGS is approved on or before Oct. 25, the average monthly bill for residents in Kansas will increase by nearly $6.71 or (10.41%) for small residential consumers, or increase $9.48 for larger residential customers.
Small commercial customers can expect to see an approximate $0.97 increase, while large commercial customers can see around a $21.45 increase.
KGS holds the largest market share at 71% in Kansas and serves more than 648,000 customers in 260 communities.
Kansas Gas said one of the reasons it’s applying for a rate increase is because of nearly $600 million in investments to provide safe, reliable, and environmentally responsible natural gas service to customers over the past five years.
The application also states multiple other various costs have increased, including employee wages, benefits, and additional materials and supplies. Operations and maintenance also continue to rise.
Chad Previch, Public Relations Manager of Oklahoma Natural Gas/ ONE Gas said the request to increase rates is necessary to maintain a safe, reliable natural gas distribution system in Kansas.
“Our company pays for these investments upfront and then recovers those dollars through this process, which our regulators oversee. These efforts are what maintains the quality of service our Kansas customers have come to depend on every day.” Previch said. “Kansas Gas Service is committed to keeping rates as reasonable as possible. Our employees work diligently to maintain service as affordably as possible.”
The original KGS request made March 1 to the KCC also includes an A/B rate plan which will allow customers to have more options to control their bills, as well as a performance-based ratemaking mechanism that will adjust the rate annually.
KCC held meetings in both Wichita and Topeka for the community to learn more about the proposed increase. Customers were encouraged to make comments or to ask questions during the meeting.
“In this stage we are trying to find the right mix of charges that remain same from month to month like our service charge, and those that follow usage, like our delivery charge,” said Bob Vincent, Managing Attorney of Kansas Gas Services, during the public hearings in Wichita on June 17.
Previch said that most of the customers’ comments regarding the increase have focused on the country’s inflationary environment. Previch said feedback is important to the process.
An average residential customer pays just under $1,200 for natural gas services per year. $664.97 of the bill goes to the cost of gas, $50.05 in franchise fees, $75.44 in various taxes, and $370.18 in KGS direct costs, Vincent said.
“Commission staff is currently conducting an independent review of the application, analyzing the company’s financial records and identifying potential impacts, positive or negative, of any actions requested by KGS on the ratepayers, the company, and the general public. It is also important to ensure the rate designs are fair to each customer class and fair to KGS,” said Linda Berry, Director of Public Affairs and Consumer Protection at Kansas Corporation Commission.
Previch said that KGS is prioritizing communication and updates during the process by notifying customers with information through the company’s monthly newsletters, postcards, social media, and public meetings.
