Kansas Gas earnings nearly triple inflation rate but execs beg KCC for more
OPINION: This article reflects the author's opinion, not tied to the publication
Kansas Gas Services customers have probably received an email or a letter in the mail about the company once again “asking” the Kansas Corporation Commission (KCC) for yet another increase in monthly rates.
From the email I received (emphasis mine):
Kansas Gas Service has filed an application with the Kansas Corporation Commission ("Commission") requesting a net increase in base rates of $58.1 million. The requested increase would affect the portions of a customer's bill that relate to the delivery of natural gas by Kansas Gas Service, including the fixed monthly Service Charge and the Delivery Charge.
The filing proposes new residential rate options that align with the energy used by the customer. If approved, the average monthly residential bill will increase by approximately $6.71 (10.41%) for customers who use less natural gas and $9.48 (8.25%) for those who use more natural gas.
Note that the proposal affects net rates, that is, rates after expenses are considered. Also, low-use consumers will pay nearly 2.5% more than higher-use customers.
Corporate greed fuels inflation
The Bureau of Labor Statistics reported that the 2023 Consumer Price Index increased by nearly 3.4%. KGS is asking for a rate increase of triple the inflation rate for low-use customers and two and one-half times that for higher-use customers.
Private companies owned primarily by institutional shareholders holding monopolistic power over necessary services are anti-competitive and accountable to no one. As Kansas has seen with its other large utility, Evergy, unjustifiable rate increases are the norm.
The KCC is toothless because the Kansas legislature has bent its knee to out-of-state billionaires for far too long. Rampant rate increases make Kansas anti-competitive because prospective businesses wishing to move here must factor in higher utility costs for businesses and employees. Nebraska and Oklahoma have lower residential gas rates, per Choose Energy, an independent energy cost aggregator.
KGS doesn’t need the money. Their upbeat 2023 shareholder report states that the company’s net earnings increased to $231 million from $222 million in 2022. The rate increase proposal submitted to the KCC includes increasing “executive compensation.”
Public input
Per KCC rules, Kansas Gas is seeking public input and comments. The two hearings have already been scheduled:
Thursday, June 13, 2024, 6-8 p.m.
Washburn Institute of Technology
Main Conference Center, Building A
5724 SW Huntoon St.
Topeka, Kansas 66604Monday, June 17, 2024, 6-8 p.m.
Wichita State University, Low Auditorium
Hughes Metropolitan Complex
5014 E 29th St. North
Wichita, Kansas 67205
In-person and virtual participation are available. From the KGS notice:
Attendees may participate in person or virtually through Zoom. Those choosing to join through Zoom must register at https://kcc.ks.gov/your-opinion-matters by noon the day before the hearing. The hearing will be broadcast live on the Commission’s YouTube channel, which can be found on the Commission’s website: www.kcc.ks.gov. Registration is not required to view only. A recording of the hearing will be available on the Commission’s website.
Any person requiring special accommodations at the hearing site under the Americans with Disabilities Act needs to give notice to the Commission at least 10 days before the scheduled hearing date by calling 785-271-3140.
Stand up to rate increases
Public input will be accepted through 5 p.m. on August 5, 2024. Input and comments can be submitted in three ways:
via the KCC website at www.kcc.ks.gov. Click on the “Your Opinion Matters” link and type away.
send a letter to the Kansas Corporation Commission, Office of Public Affairs and Consumer Protection, 1500 SW Arrowhead Rd, Topeka, KS 66604 4027. Be sure to reference Docket No. 24 KGSG 610 RTS.
call the Commission's Public Affairs office at (800) 662-0027 or (785) 271-3140.
Per the KGS rate increase notice:
Public Comments received during the comment period will be entered into the official case record and posted on the website at the end of the comment period.
This is the time for Kansas utility customers to stand up and step firmly on the energy inflation brake pedal. Contact the KCC today.