The Kansas Corporation Commission has approved a partial unanimous settlement agreement negotiated between the KCC staff, the Citizens Utility Ratepayer Board, and Kansas Gas Service pertaining to the utility’s application to increase rates.

Under the agreement, residential customers will see an increase of $2.40 per month ( 4.23% ) on average. That includes an increase in the customer charge from $16.70 to $18.70 per month. The new rate takes effect February 6th. The company’s original proposal called for a monthly residential increase of $5.67 or 10 percent. In its application, KGS had asked to increase base rates by $45.6 million. The settlement approved on Tuesday will result in an annual increase of $21.5 million.

One issue yet to be decided is whether KGS will be allowed to keep the tax savings it has accrued since the Federal Tax Cut and Jobs Act took effect. The KCC will issue a decision on the tax savings issue on or before February 25th.

Kansas Gas Service provides service to Junction City.