Summary
ONEOK Inc. announced a significant development regarding its Kansas Gas Service division. The Kansas Corporation Commission has approved a settlement for a pending rate case, which is expected to increase Kansas Gas Service's annual revenue by $52.0 million. This rate adjustment is anticipated to boost the utility's annual operating income by approximately $44 to $47 million, commencing in 2007. The settlement, agreed upon by all parties on October 26, 2006, will result in new residential and commercial rates effective for service rendered on and after January 1, 2007. Key aspects of the settlement include an approximate $5.83 monthly increase for the average residential customer's bill. Importantly, Kansas Gas Service withdrew its proposed two-tier rate design for residential and general service customers, as well as its application for a new pension and employee benefit rider, as part of the negotiated agreement. The final regulatory approval is subject to a 15-day appeal period concluding on December 1, 2006.
Key Highlights
- 1Kansas Corporation Commission approved a settlement for Kansas Gas Service rate case.
- 2Annual revenue for Kansas Gas Service expected to increase by $52.0 million.
- 3Annual operating income expected to increase by $44 to $47 million starting in 2007.
- 4New rates will be effective for service rendered on and after January 1, 2007.
- 5Average residential customer's monthly bill to increase by approximately $5.83.
- 6Kansas Gas Service withdrew requests for a two-tier residential rate design and a new pension/employee benefit rider.
- 7The approval is subject to a 15-day appeal period ending December 1, 2006.