Natural gas bills may go up next year

Kansas Gas Service rates could increase $1.25 a month for residential customers, after a settlement agreement was approved this week by the Kansas Corporation Commission.

Originally, Kansas Gas Service proposed a $4.54 rate increase a month. The settlement is nearly $20 million less than KGS had originally requested.

New rates would go into effect Jan. 1.

KGS’s application sought a net revenue increase of $35.4 million. Parties to the docket negotiated a unanimous settlement agreement that increases KGS’s revenue by $15.5 million, including the $7.4 million Gas System Reliability Surcharge, which is currently being recovered from customers as a separate line item.

Also, the company was seeking approval of a Cost of Service Adjustment, an alternative ratemaking mechanism that would reset rates annually. In the settlement agreement, KGS agreed to withdraw the request for COSA.

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