Kansas Gas ratepayers will need to budget for slightly higher payments after a settlement announced by the Kansas Corporation Commission on Thursday.
The KCC approved a $35 million increase in rates after Kansas Gas had asked for an increase of over $58 million. As a result, residential customers with average use can expect an increase of $3.83 a month or just over $46 a year with the new rate schedule.
The approved increase is smaller than what had been proposed. Kansas Gas had originally asked for permission to use a two-rate structure based on usage. KCC staff and the Citizens Utility Ratepayer Board both opposed that approach, saying the residential rate increase would have been over $6.70 a month to almost $9.50 monthly. Kansas Gas also withdrew a proposal to start a performance-based rate system which would have given the utility a chance to adjust rates every year.
This is the first rate case in five years for Kansas Gas in front of KCC. The utility says it has invested $600 million in capital investments since the last rate case.
