Summary
ONEOK, Inc. reported through an 8-K filing on October 30, 2006, that its division, Kansas Gas Service (KGS), has reached a settlement regarding a proposed rate increase. The settlement, agreed upon with the staff of the Kansas Corporation Commission, Citizens' Utility Ratepayer Board (CURB), and other interveners, proposes an annual revenue increase of $52.0 million for KGS. This settlement is a significant development following KGS's initial application on May 15, 2006, which sought a larger annual revenue increase of $73.3 million. The negotiated amount represents a compromise and is now subject to the approval of the Kansas Corporation Commission. If approved, the new residential and commercial rates are expected to take effect on January 1, 2007, following a commission hearing scheduled for November 6, 2006.
Key Highlights
- 1Kansas Gas Service (KGS), a division of ONEOK, Inc., has reached a settlement for a rate increase.
- 2The negotiated annual revenue increase amounts to $52.0 million.
- 3This settlement is a reduction from the initial requested increase of $73.3 million.
- 4The settlement was reached with key stakeholders including the Kansas Corporation Commission staff, CURB, and other interveners.
- 5The agreement is contingent on approval from the Kansas Corporation Commission.
- 6New rates are expected to be implemented on January 1, 2007, if the settlement is approved.
- 7A hearing to present the settlement terms is scheduled for November 6, 2006.