Kansas Gas Service asking KCC to authorize $93.1 million overall revenue increase

TOPEKA — The Kansas Corporation Commission invited public comment from nearly 650,000 customers of Kansas Gas Service on the request for an overall revenue increase of $93.1 million that would translate into an average increase of less than $10 in monthly residential bills.

Proposed changes subject to June public hearings in Topeka and Wichita would apply to portions of a KGS customer’s bill tied to fixed monthly service and delivery charges. If approved by the KCC in October, the average increase for residential customers using lower volumes of natural gas would be about $6.71 per month and the surge in average cost for customers with higher usage rates would be $9.48 per month.

In March, the company asked state regulators to endorse revenue changes applicable to 592,000 residential customers and 56,000 business customers in 360 Kansas communities. The request by the largest natural gas public utility in Kansas included a $58.1 million escalation in base rates and the transition of a $35 million “gas system reliability” surcharge into the base rate.

The last KGS base rate increase was granted in February 2019 by the KCC and amounted to $21.5 million.

Sean Postlethwait, a vice president at KGS, said the company invested more than $600 million in delivery of “safe, affordable and reliable” natural gas to its customers since the KCC resolved the previous rate case. KGS has an obligation to continue investing in that delivery system, he said.

“Throughout this period,” he said, “KGS has worked to efficiently deploy capital and prudently incur expenses. KGS must be afforded an opportunity to earn a reasonable rate on its investment.”

He said the proposal reflected the company’s need to attract capital and talented employees to provide the level of customer service “our stakeholders expect.” KGS, which is a division of ONE Gas Inc., says the company experienced rising payroll expenses that could be addressed through employee incentives.

Public hearings have been scheduled for 6 p.m. June 13 at Washburn Institute of Technology, Building A, 5724 SW Huntoon Street in Topeka, and 6 p.m. June 17 at Wichita State University, Lowe Auditorium, Hughes Metropolitan Complex, 5014 E 29^th Street in Wichita.

An alternative to in-person participation would be available through Zoom. Anyone choosing the online option must register on the KCC’s website by noon the day before the hearing. KCC hearings are broadcast live on the KCC’s YouTube channel.

In addition, the KCC would accept written comments regarding KGS’s rate increase request until 5 p.m. Aug. 5. Remarks can be sent to the commission’s office at 1500 SW Arrowhead Road, Topeka, 66604-4027.

In terms of considering this KGS request, the KCC scheduled a three-day hearing starting Aug. 12 at the commission’s Topeka office. The schedule called for the KCC to issue a decision by Oct. 24.