For more information contact: Linda Berry, KCC Public Affairs Director (785) 271-3269
February 24, 2020
KCC rules on Atmos Energy rate increase request
Topeka – This afternoon, the Kansas Corporation Commission issued an order on Atmos Energy’s rate increase request. The natural gas company requested a $7.2 million net revenue increase that would have raised monthly residential bills by approximately $4.33 in winter months and $3.41 in the summer. Today’s Commission order allows for an average customer increase of only $0.35 per month in the winter and $0.11 in summer months.
Rather than a net revenue increase, the order calls for a net revenue decrease of $223,953. The slight increase in residential ratepayer’s bills is designed to better align rates between customer classes and reduce the subsidization of the residential class, by the commercial sales class.
Other issues addressed in the rate case include return on equity (ROE) and the creation of a System Integrity Program (SIP) to accelerate the replacement of aging infrastructure.
Atmos initially proposed an ROE of 10.25%. The Commission opted to stay with the current ROE of 9.1% stating the proposed ROE runs counter to the downward trends in Kansas and nationwide due to lower costs of capital.
The System Integrity Program (SIP) was denied, based on the current proposal. However, guidance was provided leaving the door open for the company to make the recommended adjustments and initiate a new filing with the Commission if desired.
Atmos serves 135,820 customers in Kansas. Today’s Commission order can be viewed at http://estar.kcc.ks.gov/estar/ViewFile.aspx?Id=fd4bf519-8109-4591-a339-86922f6bc68f.