TOPEKA, Kansas (WIBW) – The Kansas Corporation Commission held a witness hearing Tuesday to examine a proposal by the Kansas Gas Service to increase its rates.
The Commission’s Board heard witnesses and clarified some issues in its review of the final approval.
Staff from KCC, KGS, the Citizen Utility Ratepayer Board (CURB) and WoodRiver Energy presented the agreement. The parties discussed the impact of a potential increase and expanded the agreement.
“The company had originally asked for a higher percentage of this total rate increase to be passed on to residential ratepayers. However, through negotiations, we were able to reduce not only the total increase, but also the percentage allocated to residential ratepayers,” said CURB attorney Joseph Astrab.
“The parties have agreed to recommend a $70 million across the board increase in Kansas Gas Service’s base rates,” said Kansas Gas Service managing attorney Robert Vincent. “This increase includes a $35 million recalculation that we are already recovering through our gas system reliability award – the total net increase in our rates is $35 million.”
However, not all participants agreed with possible admission.
“Any increase over what it is now is still a loss for the citizens. They try to make it look like they’re giving something back to consumers, but they’re raising it anyway. They just raised it less – that’s not a gift,” said Harrison Dollar of Americans for Prosperity. “Any way you look at it, Kansans are still paying more.”
If approved, the average consumer’s monthly gas bill would increase by about $3.83.
“This was KGS’ first rate case in the last five years, so there is a lot going on in Kansas in terms of investments and changes,” Astrab said. “Part of the regulatory agreement is that the company should be given a fair chance to repay its investments and recover those costs from ratepayers. In return, ratepayers will receive consistent, reliable service.”
The KCC must approve, reject or modify the agreement by October 25.
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