Kansas Gas Service ordered to pass tax savings on to customers

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Residential customers of the Kansas Gas Service are going to save about $22 on a future bill thanks to an order issued Monday.

The Kansas Corporation Commission has told the utility company it must return more than $17.9 million dollars in tax savings to customers. As a result, residential customers will receive a one-time credit on their bill amounting to $22.78.

KGS saved millions after a federal tax cut reduced the corporate tax rate from 35 percent to 21 percent in January 2018. They held those funds in a separate account for review by the KCC.

They filed a rate case in June asking to keep the savings to offset KGS’ costs of service, but the KCC ruled that was not in the public interest. The KCC’s order states that KGS provided them no evidence that returning the savings will endanger the utility’s economic health or make it less capable of providing services.

“The fact that KGS has experienced offsetting cost increases in its cost of service should be a factor that contributes to the setting of KGS ‘s base rates, … [b]ut it should not influence whether KGS is required to pass the deferred benefits of tax reform that have accrued between January 1, 2018, and February 28, 2019, onto Kansas customers.”

The full KCC order can be viewed online at this link.

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Nick McNamara

Local government reporter, sometimes host/producer of the KMAN Morning Show. 2017 Long Beach State graduate in Journalism/Native American cultures. Los Angeles County born and raised. Nick can be reached at Nick@1350KMAN.com.

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