News Release

November 17, 2006

KCC Reduces Kansas Gas Service request for rate increase

The Kansas Corporation Commission (KCC) has issued an order approving a stipulated agreement granting Kansas Gas Service (KGS) a $52 million rate increase. The settlement agreement was reached and agreed to by KCC Staff, KGS, the Citizens Utility Ratepayer Board (CURB), the Department of Defense and other affected federal agencies. The City of Wichita participated in the settlement discussion, did not sign the agreement, but does not oppose it.

The agreement will result in an average increase of $5.83 per month for residential customers and $14.19 for general services customers. Rates will be effective for services provided on and after January 1, 2007.

The rates do not involve the cost of gas, which is the wholesale price KGS pays to natural gas producers and pipeline companies for the commodity, plus storage and transmission costs without any markup. The price of gas is not regulated and is market driven.

KGS filed an application requesting a natural gas rate increase of approximately $73.3 million. In its application, the company said it was seeking to recover significant cost increases associated with operating its natural gas delivery system and earning a reasonable rate of return on its investments. The company’s last rate increase was granted in 2003 for approximately $45 million.

Kansas Gas Service, a division of Oneok based in Tulsa, Oklahoma, provides natural gas service to approximately 642,000 customers throughout Kansas.

Docket No. 06-KGSG-1209-RTS