Aquila seeking gas rate increase

Lawrence’s provider of natural gas has filed a request with state regulators to increase its rates by 5.5 percent in 2005.

Officials with Aquila Inc. filed a rate increase request this afternoon with the Kansas Corporation Commission. The increase would generate $6.2 million in new revenue for the Kansas City, Mo.-based company.

The company estimates that the average increase for a typical residential customer would be $4.25 per month or $51 a year. The increase would be in addition to increases in the price of natural gas itself. The rate Aquila charges is based solely on how much it costs to deliver the gas to customers.

Commissioners with the KCC must approve the request before it can take affect. Aquila officials said they expect a decision from the KCC by June 2005.

Aquila last received a rate increase in 1999. The company said the increase is necessary to pay for its increased cost of doing business.