Mon December 10, 2012
KS Ratepayers Board: KGS Rate Hike Is Fair
The Citizens Utility Ratepayers Board, a consumer advocacy agency for utility customers, says the agreement recently reached on a Kansas Gas Service rate hike was a fair one.
David Springee, an attorney with CURB, says it's actually a significantly lower increase than the utility had requested.
"There are certain things, like the Kansas Gas Service asked for a 10.75 shareholder profit to be built into rates," says Springee.
"Clearly, we all understand given the capital markets and the low cost of capital in the markets today, that was a very high number and they knew that they were not going to get that. So really, they couldn't have expected to get everything they wanted."
KGS had also initially requested a revenue guarantee to ensure a certain amount of profit. Springee says no utility has ever been granted a revenue guarantee in the entire 110 year history of the Kansas Corporation Commission.