Kansas Gas Service ordered to pass tax break on to customers
Customers will get one-time bill credit
TOPEKA, Kan. — Revision from KCC: The total amount of the tax savings realized by Kansas Gas Service in the accrued regulatory liability account is approximately $16.6 million. The one-time bill credit for residential customers will be $21.06 instead of $22.78 as stated yesterday. The amounts are slightly lower than what was included in yesterday’s release due to the fact that on February 6th, new rates were put in place for Kansas Gas Service customers. The new rates took into account the lower tax rate, meaning only 5 days of tax savings from February were put into the regulatory liability account versus the entire month of February.
Kansas regulators have ordered Kansas Gas Service to return more than $17.9 million in tax savings to its customers.
The Kansas Corporation Commission said in a news release Monday that its order will mean a one-time bill credit of $22.78 for residential customers.
The agency says the savings are the result of a federal law that reduced the corporate tax rate from 35 percent to 21 percent in January of last year. The Commission had required utilities to track and keep separate savings from the tax cut pending its review.
In a rate case filed in June, KGS asked to keep the savings to offset its service costs, but the Commission determined that was not in the public interest.
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