ONE Gas, Inc. has announced that it’s Kansas Gas Service division has filed a request with the Kansas Corporation Commission to increase its net base rates by $42.7 million. Since its last adjustment to base rates in January, 2017, Kansas Gas Service has invested approximately $179 million in its natural gas distribution system. The system stretches approximately 13,000 miles throughout Kansas and serves more than 636,000 customers in 360 communities including Junction City.
Pierce H. Norton II, ONE Gas president and chief executive officer said, “This filing reflects the investments in our infrastructure to upgrade our system and maintain the quality of service our customers have come to expect and deserve.”
If approved, the request would increase the typical residential customer’s monthly natural gas bill by approximately $5.67 or 10 percent. Kansas Gas Service is already recovering $2.9 million from customers through the Gas System Reliability Surcharge, resulting in a total base rate increase of $45.6 million. Benefits of the corporate income tax cuts associated with the new federal legislation that went into effect earlier this year are also reflected in the company’s filing.
The portion of the bill associated with the cost of gas, which represented 42 percent of the average residential bill in 2017, is not impacted by this filing. The cost of gas continues to be passed through directly to the customer with no markup. Kansas Gas Service’s filing also includes a Revenue Normalization Adjustment that is designed to ensure that the company collects the amount of revenue set by the KCC from residential, general sales and small transport customers, regardless of customer usage.
In accordance with Kansas law, the KCC has 240 days to consider Kansas Gas Service’s filing. Customers will have an opportunity to comment during a public hearing and comment period. The date and location of the public hearing and comment period have not been established but will be announced and mailed to customers.