News Release

For more information contact: Jesse Borjon, (785) 271-3269

June 27, 2014

Commission Intervention Results in $28 Million Savings to Kansas Ratepayers

Topeka, KS - 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 (FERC) in Washington, D.C. requesting an increase in revenue requirement to $294 million. At the direction of the Commission, Kansas Corporation Commission (KCC) 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, a total savings of $55.5 million, $28 million of which directly benefits the Kansas ratepayer.

"The settlement agreement approved by FERC is significant as it directly impacts the cost of natural gas for Kansas ratepayers," stated Shari Feist Albrecht, Chair, Kansas Corporation Commission. "This charge is passed on to customers of natural gas utilities on a monthly basis and reflected in the customer's purchase gas adjustment."

The KCC regulates public utilities including telecommunications, natural gas, electric and water companies, and oil and gas producers. The KCC regulates public utilities to ensure that customers of regulated utilities are provided sufficient and efficient service at just and reasonable rates.

A copy of the letter order approving the settlement agreement is available by visiting http://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=13523969.

 

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