Jason AlatiddTopeka Capital-Journal
Kansas Gas Service has asked the state's utility regulators to allow the monopoly to increase how much you pay each month in base rates on your natural gas bill.
Here's what to know ahead of Thursday's public hearing by the Kansas Corporation Commission in Topeka.
How will the Kansas Gas Service rate case affect me?
Kansas Gas Service is requesting rate increases. The increase in base rates would raise net revenue by $58.1 million, but the total request in the filing is for a $93.1 million increase that includes $35 million already approved through a reliability surcharge.
The company is also seeking approval to establish two rate options for residential customers based on gas usage.
Residential ratepayers who use less would have their average monthly gas bill increase by about $6.71, or about 10.41%. Those who use more would have their average bill increase about $9.48, or about 8.25%.
Small residential ratepayers — those using less than 73 MCF of natural gas per year — would have a relatively lower monthly service charge and a higher deliver charge. Large residential ratepayers — those using more than 73 MCF of natural gas per year — would have a relatively higher monthly service charge and a lower delivery charge.
The smaller ratepayers would have their monthly service charge increase from $18.18 to $20, while the larger ratepayers would have their monthly service charge increase from $18.18 to $35.
The smaller ratepayers would have their delivery charge increase from $2.3485 to $4.3818 per MCF, which is a unit of measure meaning 1,000 cubic feet. The larger ratepayers would have their delivery charge decrease from $2.3485 to $1.9160 per MCF.
The existing reliability surcharge of $3.57 per month would be added into base rates.
Meanwhile, small commercial customers would see their average monthly bill increase by about $0.97, while large commercial customers would have a $21.45 increase.
Why does Kansas Gas Service need more money?
Kansas Gas Service said safety is its top priority.
"That is why we continually upgrade our natural gas system to help protect the communities we serve and deliver reliable energy to our customers every day," the company said. "Recently, we asked the Kansas Corporation Commission to review our rates to help recover our investments over the past few years and maintain the quality of service to our customers."
The monopoly argues the increase is "necessary because the company has continued to invest in its system to provide its customers with safe, reliable and efficient natural gas service" and "it has experienced increased payroll expenses and supplier costs."
The company said its investments in its pipeline are paid for up front, and to continue to invest in the system, it needs to recover a port of those costs "and earn a fair return on that investment."
"We understand the increased financial pressures everyone is facing today," the company said. "Our employees work hard to manage our expenses to help keep energy costs at reasonable rates."
Kansas Gas Service is the largest natural gas distributor in Kansas and is a division of Tulsa-based ONE Gas Inc. The company provides natural gas service to about 648,000 homes and businesses in 360 communities in the state.
The last increase in Kansas Gas Service base rates was approved in February 2019.
Who makes the final decision?
The Kansas Corporation Commission, with input from staff and involved parties, will make the final decision on the proposed rate increases through docket No. 24‑KGSG‑610‑RTS. The commission wascreated by state law, and one of its roles is toregulate rates for public utilities.
The three members of the unelected commission are appointed by the governor and confirmed by the Senate. Their names are Andrew French, Dwight Keen and Annie Kuether.
The KCC has a three-day evidentiary hearing scheduled to start Aug. 12 ahead of an Oct. 25 deadline to issue a decision.
If approved, the new rates are anticipated to take effect by Nov. 1.
How can I speak out about higher gas bills?
The KCC is holding two public hearings.
The first is at 6 p.m. Thursday in Topeka. It is at the Washburn Institute of Technology main conference center in Building A, 5724 S.W. Huntoon St.
The second is 6 p.m. Monday in Wichita. It is at Wichita State University's Lowe Auditorium in the Hughes Metropolitan Complex, 5014 E. 29th St. North.
People unable to attend in person can participate via Zoom but have to register through the KCC website by noon the day before.
You can also observe the hearings via recorded livestreams on the KCC YouTube channel.
You may also submit public comment by calling the KCC at 785-271-3140 or 800-662-0027, or in writing online or by mail to the KCC Office of Public Affairs and Consumer Protection, 1500 S.W. Arrowhead, Topeka, KS 66604. The deadline is Aug. 5.
Jason Alatidd is a Statehouse reporter for The Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X@Jason_Alatidd.
