Summary
ONEOK, Inc. (OKE) filed an 8-K on August 19, 2003, to report a significant development concerning its Kansas Gas Service Company (KGS) division. KGS has reached a $45 million stipulated settlement agreement with key regulatory bodies and intervenors in a rate case. This settlement, upon commission approval, will lead to new residential and commercial rates. Key financial implications for customers include an estimated average monthly bill increase of approximately $5 for residential customers. These increases are attributed to changes in monthly service and volumetric delivery charges, not the cost of the natural gas itself, as KGS does not profit from gas sales. Importantly, the agreement includes a commitment from KGS not to seek another rate increase before May 15, 2006, providing a period of rate stability for its customers.
Key Highlights
- 1Kansas Gas Service (KGS), a division of ONEOK, negotiated a $45 million stipulated settlement agreement.
- 2The settlement is with the staff of the Kansas Corporation Commission, Citizens’ Utility Ratepayer Board, and all intervenors in a rate case.
- 3New residential and commercial rates will be implemented upon Commission order.
- 4Estimated average residential customer bill increase is approximately $5 per month.
- 5Rate increases affect monthly service and volumetric delivery charges, not the cost of gas.
- 6KGS has agreed not to seek a rate increase before May 15, 2006.