News Release
March 29, 2005
KCC to hold public hearing in Aquila’s $6.2 million natural gas service rate increase request
Aquila Inc. d/b/a Aquila Networks - KGO (Aquila) filed an application with the Kansas Corporation Commission requesting a $6.2 million increase in rates for natural gas service – approximately 18 percent. The requested rate increase would affect only the portions of a customer’s bill that relate to Aquila’s gas delivery costs – the fixed monthly “Customer Charge” and the per therm (unit of gas consumption) “Energy Charge”.
The rate case does NOT involve the cost of gas that is collected from customers through the Purchased Gas Adjustment (PGA). The cost of gas is not regulated and is subject to market forces such as supply and demand, storage volumes, and weather.
Aquila's Proposal
Residential customers: Aquila proposes that the residential customer class be divided into two groups – customers using 750 therms or less annually and customers using more than 750 therms annually. Approximately 50 percent of all residential customers are in each of these categories.
| Residential Rates | Existing Rate | Proposed Rate | Increase* |
|---|---|---|---|
| 750 therms or less annually | |||
| Customer Charge | $7.00 | $10.60 | |
| Volumetric Charge/therm | $.195 | $.238 | |
| Monthly Bill for 100 therms | $26.52 | $34.40 | $7.88 |
| Greater than 750 therms annually | |||
| Customer Charge | $7.00 | $22.35 | |
| Volumetric Charge/therm | $.195 | $.054 | |
| Monthly Bill for 100 therms | $26.52 | $27.70 | $1.18 |
* Increase for typical bill of 100 therms. Figures will vary for different levels of use. (This does not include the cost of gas.)
Small Commercial customers: The company has also proposed that the small commercial class be divided into two groups – customers using 1750 or less therms annually and customers using more than 1750 therms annually.
| Small Commercial Rates | Existing Rate | Proposed Rate | Increase/ (Decrease)* |
|---|---|---|---|
| 1750 therms or less annually | |||
| Customer Charge | $11.00 | $20.00 | |
| Volumetric Charge/therm | $.205 | $.274 | |
| Monthly Bill for 400 therms | $93.00 | $129.45 | $36.45 |
| Greater than 1750 therms annually | |||
| Customer Charge | $11.00 | $45.90 | |
| Volumetric Charge/therm | $.205 | $.089 | |
| Monthly Bill for 400 therms | $93.00 | $81.57 | ($11.43) |
* Increase/Decrease for typical bill of 400 therms. Figures will vary for different levels of use. (This does not include the cost of gas.)
Aquila has also proposed a Low Income Weatherization Program to be funded by all sales customers through an additional cost of $.002 per therm in rates. Under the company’s request the program would be coordinated through area community action agencies.
In its application, Aquila stated the $6.2 million increase is necessary to recover system investments that will help maintain system reliability and safety. The company is also seeking to recover increases in wages, medical expenses, and cost of materials and supplies. Aquila’s last rate increase of $3.2 million was approved in 2000.
Public Hearings
The Commission has scheduled three public hearings concerning Aquila’s natural gas service rate increase request. The hearings are to provide an opportunity for customers to testify before the Commission and will consist of two parts. First, there will be a question and answer period to allow customers to ask Commission staff and company representative’s questions about the request. In the second part of the hearing, customers will be allowed to make their statement to the Commissioners. The public hearings are scheduled as follows:
- Tuesday, April 5: 7 p.m. at The Robert J. Dole Institute, Simon’s Seminar Room, 2350 Petefish Drive, Lawrence
- Thursday, April 7: 7 p.m. at the Sedgwick County Extension Education Center, 7001 W. 21st Street North, Wichita
- Tuesday, April 12: 7 p.m. at the Dodge City Civic Center, 2110 1st St, Dodge City
The Commission will accept comments from Aquila customers through April 29, 2005. Comments regarding the case should reference Docket No. 05-AQLG-367-RTS and may be emailed to public.affairs@kcc.state.ks.us or mailed to the Kansas Corporation Commission, Office of Public Affairs and Consumer Protection, 1500 SW Arrowhead Road, Topeka, KS 66604. Customers may also call the Commission at 1-800-662-0027.
Evidentiary hearing
The Commission will conduct an evidentiary hearing on the Aquila rate increase request beginning May 2, 2005, at 10:00 a.m. in the first floor hearing room at its Topeka office. At this hearing, KCC Staff, Aquila representatives, and interveners such as Citizens' Utility Ratepayer Board will present their case to the Commission, which must issue a decision on the case by June 29, 2005.
Additional Information
For more information about the rate increase request or hearings, contact the Commission’s Office of Public Affairs and Consumer Protection at 1-800-662-0027, or in Topeka call 271 3140. Any person requiring special accommodations at the hearing site under The Americans With Disabilities Act must give notice to the Commission at least ten days prior to the scheduled hearing date.
Release No. 04-2005
Docket No. 05-AQLG-367-RTS