Kansas Gas to increase its rates
Wichita ? The settlement of a state gas rate case will cost the average Kansas Gas Service customer about $72 more a year.
Under the settlement announced Friday by the company and consumer advocates, Kansas Gas will be paid $52 million more a year for providing gas to its customers.
The increase applies only to the rates customers pay to the company for running its delivery system. The cost of the gas itself is a passed directly to customers and fluctuates with market prices.
Kansas Gas had asked for a $73.3 million increase, while the Citizens’ Utility Ratepayer Board had recommended a $42 million payment. Kansas Corporation Commission staff had recommended $51 million.
The commission could reject or alter the settlement, but it rarely does that when its staff, a utility and all the consumer advocates are in agreement.
The city of Wichita and the Wichita school district, which were parties in the case, have accepted the settlement, commission spokeswoman Rosemary Foreman said.
The gas company needed the rate increase to offset the increased cost of maintaining and improving gas service equipment, said company spokesman Al Walker.
David Springe, chief counsel for CURB, said the settlement was probably the lowest increase possible unless CURB won on every issue it raised, which was unlikely.
Kansas Gas, a division of Tulsa, Okla.-based ONEOK Inc., hadn’t sought a rate increase since 2003. Since then, the company has spent $170 million to upgrade equipment serving its 642,000 Kansas customers.




