Oneok Inc.’s Kansas Gas Service Co. division will get a $45 million rate increase, according to a new settlement agreement with the staff of the Kansas Corporation Commission, Citizens’ Utility Ratepayer Board and all intervenors in the rate case. The rate hike is about 41% lower than KGS, the largest natural gas distribution company in Kansas, originally requested ($76 million) to cover higher operating costs including health care coverage, wages, materials and supplies.

“It’s been seven years since we had a rate increase and yet the company has continued to do more with less,” said Phyllis Worley, president of Kansas Gas Service. “Even though our cost of doing business has risen, we have continued to provide high-quality customer service and invested millions of dollars to improve our pipeline and facilities network.” The capital improvements have included re-piping mobile home parks, installing automated meter reading and improvements to facilities throughout the state, the company said.

Following regulatory approval, the average residential customer will see bills increase about $5 a month. But as part of the settlement, KGS has agreed not to request another rate increase before May 15, 2006.

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