KCC Order Requires Kansas Gas Service to Pass Tax Break on to Customers

Topeka– In an order issued yesterday (February 25, 2019), the Kansas Corporation Commission (KCC) instructed Kansas Gas Service (KGS) to return just over $17.9 million in tax savings to its customers. For residential customers, that will mean a one-time bill credit of $22.78.

Kansas Gas Service
Kansas Gas Service

The savings resulted when the Federal Tax Cuts and Jobs Act (TCJA) reduced the corporate tax rate from $35% to 21% in January of last year. The KCC required utilities to track savings resulting from the tax cut and maintain those funds in a separate interest-bearing regulatory account pending Commission review.

In a rate case filed in June, KGS asked to retain the accrued tax savings to offset its cost of service. The Commission determined that was not in the public interest and, as yesterday’s order states,

“KGS has provided no evidence that returning the regulatory liability to its customers will endanger KGS’s health and viability in providing reliable, sufficient and efficient service”.

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