KCC approves settlement agreement in Atmos rate increase request

TOPEKA – Today, the Kansas Corporation Commission approved a settlement agreement allowing Atmos Energy to increase its net revenues by $2.2 million raising residential rates by $1.03 per month for the average customer. The change will take effect this month.

Atmos originally asked the Commission for an $8.3 million net revenue increase in an application filed in September. If it had been approved, residential bills would have increased $5.67 per month with average usage.

The settlement agreement approved today balances the need for reasonable customer rates while providing the company with sufficient revenues to meet its financial obligations and provide reliable service. In addition, the increase will be spread out among all customer classes. The original application requested only a residential class increase.

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The settlement, negotiated by KCC staff, the Citizens Utility Ratepayer Board (CURB), Atmos and WoodRiver Energy LLC also addressed other issues such as allowing Atmos to continue to utilize the Gas System Reliability Surcharge (GSRS) tariff to replace its aging infrastructure in the state, waiving the requirement to charge customers a credit card fee, and approving a voluntary smart choice carbon offset pilot program.

In regard to transportation only customers, the settlement establishes minimum usage levels for future transportation customers (current customers will be grandfathered in), and requires Electronic Flow Measurement (EFM) equipment be installed by November 2024 with an exception for certain existing small use meters and school customers using less than 3,000Dth/year. EFM devices make it possible to determine which transporters are responsible for imbalances during an operational flow order (OFO) event during times of volatile pricing. This change is necessitated by problems encountered with needed gas flow during Winter Storm Uri and will insure that transporters not following an OFO are held accountable.

Atmos supplies natural gas service to more than three million customers in eight states including 139,000 Kansas customers.

Today’s order is available here.

A recording of today’s Business Meeting featuring comments by Commissioners, is available on the KCC YouTube channel.

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Derek Nester
Derek Nesterhttp://www.sunflowerstateradio.com
Derek Nester was born and raised in Blue Rapids and graduated from Valley Heights High School in 2000. He attended Cowley College in Arkansas City and Johnson County Community College in Overland Park studying Journalism & Media Communications. In 2002 Derek joined Taylor Communications, Inc. in Salina, Kansas working in digital media for 550 AM KFRM and 100.9 FM KCLY. Following that stop, he joined Dierking Communications, Inc. stations KNDY AM & FM as a board operator and fill-in sports play-by-play announcer. Starting in 2005 Derek joined the Kansas City Chiefs Radio Network as a Studio Coordinator at 101 The Fox in Kansas City, a role he would serve for 15 years culminating in the Super Bowl LIV Championship game broadcast. In 2020 he moved to Audacy, formerly known as Entercom Communications, Inc. and 106.5 The Wolf and 610 Sports Radio, the new flagship stations of the Kansas City Chiefs Radio Network, the largest radio network in the NFL. Through all of this, Derek continues to serve as the Digital Media Director for Sunflower State Radio, the digital and social media operations of Dierking Communications, Inc. and the 6 radio stations it owns and operates across Kansas.

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