Letter: Natural gas rates

To the editor:

Black Hills Energy officials say present rates for natural gas services are “unjust and unreasonable.” They want a 6.7 percent rate increase, to raise $7.28 million.

The Kansas Corporation Commission is taking customer comments about the proposed rate increase until 5 p.m. Monday by phone or by email to public.affairs@kcc.ks.gov.

The proposed just and reasonable rates will boost shareholder profits by 10.6 percent and, Black Hills implies, serve safety needs. The increase does not include the cost of gas.

Black Hills wants to increase the monthly residential “customer charge” from $16 to $21.70, or about 7.5 percent. But Black Hills would decrease the “per therm commodity charge,” also called a volumetric fee, from $0.14524 to $0.14355.

The math is baffling, but Black Hills wizards estimate the “average” residential bill will increase about $4.17, or 6.7 percent.

The “customer charge” only covers delivery, service and administrative costs, at best a third of your monthly bill. Gas charges account for about half.

Safety expenses are covered by a monthly surcharge established in 2006 by the Kansas Legislature for costs of maintaining a safe, reliable system. The surcharge appears on your bill as GSRS (Gas Systems Reliability Surcharge).

The Citizens’ Utility Ratepayer Board for Kansas, a consumer watchdog, will make recommendations to KCC about the rate increase. CURB also recommends that consumers let KCC know how the proposed increase may affect their budgets.