Monday, September 01, 2014

KCC intervention saves $28 million

By The Herald Staff | 6/30/2014

TOPEKA — A Kansas Corporation Commission’s intervention resulted in a $28 million savings for Kansas rate-payers, according to a news release.

According to the release, in recent months Southern Star Central Pipeline, the largest transporter of wholesale natural gas in Kansas, filed a rate case with the Federal Energy Regulatory Commission in Washington, D.C., requesting an increase in revenue requirement of $294 million. At the direction of the commission, Kansas Corporation Commission staff intervened at the federal level and protested the amount of the requested increase. As a result, a settlement was reached granting a revenue requirement of $238.5 million increase, a savings of $55.5 million, $28 million of which benefits the Kansas rate-payer.

TOPEKA — A Kansas Corporation Commission’s intervention resulted in a $28 million savings for Kansas rate-payers, according to a news release.

According to the release, in recent months Southern Star Central Pipeline, the largest transporter of wholesale natural gas in Kansas, filed a rate case with the Federal Energy Regulatory Commission in Washington, D.C., requesting an increase in revenue requirement of $294 million. At the direction of the commission, Kansas Corporation Commission staff intervened at the federal level and protested the amount of the requested increase. As a result, a settlement was reached granting a revenue requirement of $238.5 million increase, a savings of $55.5 million, $28 million of which benefits the Kansas rate-payer.

“The settlement agreement approved by FERC is significant as it directly impacts the cost of natural gas for Kansas rate-payers,” Shari Feist Albrecht, commission chair, said. “This charge is passed on to customers of natural gas utilities on a monthly basis and reflected in the customer’s purchase gas adjustment.”

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