For more information contact: Linda Berry, KCC Director of Public Affairs (785) 271-3269
May 9, 2023
KCC approves settlement agreement in Atmos rate increase request
TOPEKA - Today, the Kansas Corporation Commission approved a settlement agreement allowing Atmos Energy to increase its net revenues by $2.2 million raising residential rates by $1.03 per month for the average customer. The change will take effect this month.
Atmos originally asked the Commission for an $8.3 million net revenue increase in an application filed in September. If it had been approved, residential bills would have increased $5.67 per month with average usage.
The settlement agreement approved today balances the need for reasonable customer rates while providing the company with sufficient revenues to meet its financial obligations and provide reliable service. In addition, the increase will be spread out among all customer classes. The original application requested only a residential class increase.
The settlement, negotiated by KCC staff, the Citizens Utility Ratepayer Board (CURB), Atmos and WoodRiver Energy LLC also addressed other issues such as allowing Atmos to continue to utilize the Gas System Reliability Surcharge (GSRS) tariff to replace its aging infrastructure in the state, waiving the requirement to charge customers a credit card fee, and approving a voluntary smart choice carbon offset pilot program.
In regard to transportation only customers, the settlement establishes minimum usage levels for future transportation customers (current customers will be grandfathered in), and requires Electronic Flow Measurement (EFM) equipment be installed by November 2024 with an exception for certain existing small use meters and school customers using less than 3,000Dth/year. EFM devices make it possible to determine which transporters are responsible for imbalances during an operational flow order (OFO) event during times of volatile pricing. This change is necessitated by problems encountered with needed gas flow during Winter Storm Uri and will insure that transporters not following an OFO are held accountable.
Atmos supplies natural gas service to more than three million customers in eight states including 139,000 Kansas customers.
Today’s order is available here.
A recording of today’s Business Meeting featuring comments by Commissioners, is available on the KCC YouTube channel.