Atmos Energy is seeking a $19.1 million rate increase to help cover the increased costs associated with investing in and operating its gas distribution system in Kansas.
The request, filed late last week with the Kansas Corporation Commission, seeks to recover a portion of roughly $137 million of capital investment in Kansas since the company filed its last rate case in 2022.
If approved, the average monthly bill for residential customers will increase by about $9.12 per month, or 11.2%, the company said.
The rate change, however, will affect all customer classes
Atmos serves nearly 140,000 customers across the state, including Olathe, Bonner Springs, DeSoto and parts of Kansas City, Overland Park, Shawnee, Lenexa and Lawrence.
In southeast Kansas, it serves customers in Independence, Coffeyville and Yates Center.
In south-central Kansas, Atmos supplies natural gas to Council Grove and Herington. And in southwestern Kansas, the utility serves Ulysses and Johnson City.
The company said the rate increase will allow it to commit capital toward infrastructure modernization, comply with natural gas pipeline safety and system integrity regulations as well as technology investments.
The rate increase also will enable the company to increase operational capabilities and continue to improve customer service.
“This rate request is to incorporate prudently incurred costs necessary to provide service to Atmos Energy’s Kansas customers into our rates,” the company said in a statement.
“We do not take rate increases for our customers lightly, and Atmos Energy looks forward to working with the Kansas Corporation Commission as they carefully consider all information pertinent to this request,” the company said.
In its application for the rate increase, Atmos said the company’s request is driven primarily by increases in investment, operating and maintenance expenses and the rising cost of capital in recent years.
“The existing retail natural gas rates of Atmos Energy are not just and reasonable in that its jurisdictional earnings are deficient,” the company said in its filing with the KCC.
“Atmos Energy must earn a reasonable return on its property dedicated to public service in order to have access to capital markets at reasonable rates, carry out new construction, provide adequate supplies of gas and render the quality of service the public requires.
“The current return to Atmos Energy is not just and reasonable.”
Two years ago, the Kansas Corporation Commission approved a settlement agreement allowing Atmos Energy to increase its net revenues by $2.2 million, which raised residential rates by $1.03 per month for the average customer.
In that rate case first filed in 2022, Atmos had originally asked the commission for an $8.3 million net revenue increase, which would have increased residential bills $5.67 per month with average usage.
The KCC said that settlement agreement balanced “the need for reasonable customer rates while providing the company with sufficient revenues to meet its financial obligations and provide reliable service.”
Further, the regulators said the increase approved in 2023 would be spread out among all customer classes while the original application requested only a residential class increase.
