photo by: AdobeStock

The Atmos Energy logo is pictured.

Natural gas bills in parts of far east Lawrence and all of Eudora may increase by more than 11%, but state regulators first want to hear from the public about the proposed increases by Atmos Energy.

The Kansas Corporation Commission will hold a public hearing next month to receive comments about the proposed rate increase for Atmos Energy. The hearing is set for 6 p.m. on Dec. 1 at Regnier Hall on the KU Edwards Campus, 12610 S. Quivira Rd in Overland Park.

Atmos Energy is a major natural gas utility for large parts of western Johnson County, but its service territory extends into sections of Douglas County. The Dallas-based company is the natural gas provider in Eudora and much of the rural area that surrounds Lawrence. In the Lawrence city limits, the company provides service at Lawrence VenturePark and other areas near the industrial park, and a few other newer areas of town on the outskirts of the city limits.

The company is seeking a rate increase of $19.1 million for its Kansas territory. For an average residential customer, the rate increase would equate to about a $9 per month increase in their bills, according to information from the Kansas Corporation Commission.

Any rate increase must be approved by the KCC, which is the state-appointed board that regulates public utilities. Members of the public can comment about the proposed rate increase in person at the Dec. 1 meeting, or can participate via a Zoom link. Registration is required to access the Zoom link. Go to the Your Opinion Matters section on the agency’s website at kcc.ks.gov for information on how to register. Written comments, with details on the website, also are accepted through Jan. 20.

The KCC is expected to issue a decision on the rate increase by late March.

The company is seeking the rate increase to recover costs of new construction and to cover new taxes that the company is required to pay, according to its filings. It also is seeking to improve its rate of return for the company’s investors. Application materials list the company’s recent rate of return at 3.7%. The new rates are estimated to boost that rate of return to 8.2%.

The rate case will be only one factor in how much customers pay for their natural gas bills in the future. Atmos, like all natural gas utilities in the state, primarily makes its money on charges for the delivery of natural gas to people’s homes and businesses. That is the rate that Atmos is seeking to increase. Customers also are charged for the actual amount of natural gas they use in a month, however, the price of that gas constantly changes based on market prices. Thus, depending on the natural gas markets, a customer’s bill may go up or down by an amount significantly different than the $9 estimate, which applies only to the delivery rates.