The Kansas Corporation Commission has approved a rate increase that will cost Kansas Gas customers an average of $2.40 per month.
The commission on Tuesday approved a settlement between its staff, the Citizens Utility Ratepayer Board, Kansas Gas Service and others. The new rates will take effect Wednesday.
Kansas Gas Service had sought an increase that would have increased average customer bills by $5.67 per month.
The utility had asked to increase base rates by $45.6 million. The settlement will result in an annual increase of $21.5 million.
The commission has not yet decided whether Kansas Gas Service will be allowed to keep tax savings accruing because of tax changes under the Federal Tax Cut and Jobs Act.