Kansas Gas Service customers will see first rate increase in 5 years. See how much

The average Kansas Gas Service customer will spend about $3.82 more per month, or $46.02 annually, under a settlement agreement approved by the Kansas Corporation Commission on Thursday.

The new rates, which equal a net increase of 4.5%, will begin Nov. 1. It has been five years since the Kansas Gas Service requested a rate increase. KGS is the largest natural gas provider in the state.

The original request, which was filed in March, asked for two different rate structures based on the usage amount. After opposition, the new agreement took out that request. The settlement agreement was filed by KCC staff, KGS, the Citizens Utility Ratepayer Board and WoodRiver Energy.

The overall net revenue increase in the settlement equals $35 million , a decrease from the $58.1 million increase that was originally requested.

The Thursday press release said that the settlement “strikes the proper balance between KGS’ desire for reasonable assurances that it will meet its financial obligations and the need to keep rates as low as possible for customers.”

How are utility rates set in Kansas?

Utility rates are governed by the Kansas Corporation Commission. The KCC oversees utilities including natural gas, electricity and telecommunications, but not the internet, cable companies, water cooperatives, long distance services and most electric cooperatives.

Providers changing their energy rates is a process. Here are the steps, from the KCC’s website:

1. Utility company files a rate case with the KCC.
2. Commission staff reviews 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.