Kansas Gas Service customers could see an increase of about $4 on their monthly bills

Kansas Gas Service customers will know by October if their natural gas bills will see an increase.

The utility first filed a rate case in March, requesting what would have been an increase of 10.41% on residential bills for customers with average usage — 73 Mcf, or thousand cubic feet — of natural gas or less per year and a 8.25% increase for those who use more than that amount. That would have been an additional $6.71 in each bill for customers in the first category and $9.48 for customers in the second category.

The Kansas Corporation Commission held two public hearings, one in Topeka and one in Wichita, to get community input on the proposal.

Since then, the proposal for two separate rate structures has been withdrawn, with a settlement that would lead to an overall increase of about $70 million in base rates. The proposed service charge for residential customers is $21.75, compared to the current one set at $18.18. The proposed delivery charge is about $2.98, compared to the current one set at about $2.35.

While that increase would be about $4.20, because of how rebasing works for certain charges, the proposal would actually lead to an increase of about $3.83 per month (or $46.02 per year) for customers with average usage, a net increase of 4.5%.

The unanimous settlement was filed by KCC staff, KGS, the Citizens Utility Ratepayer Board and WoodRiver Energy. The Kansas Gas Service hasn’t changed its base rate for five years.

A decision by the Kansas Corporation Commission is due by Oct. 25. The commission has the power to reject, approve or modify the agreement.

If approved, the rates would go into effect on Nov. 1.

How are utility rates set in Kansas?

Utility rates in Kansas are governed by the Kansas Corporation Commission, meaning utility companies can’t change their rates without going through an approval process.

The steps to changing utility rates in Kansas are:

1. Utility company files a rate case with the KCC
2. Commission staff reviews the application
3. KCC holds public hearings (not required, but common with rate cases)
4. KCC holds an evidentiary hearing
   
   
5. Commission reviews the record
6. Commission makes a decision regarding the case and announces it in an open business meeting

The KCC oversees utilities like natural gas, telecommunications, electricity and liquid pipelines. The commission does not oversee cable companies, the internet, wireless telephones, long distance service, water cooperatives and most electric cooperatives.