Regulators OK gas rate hike by 3-2 vote

LINCOLN?-- By a narrow, 3-2 vote, the Nebraska Public Service Commission ap-proved Wednesday a rate increase sought by Kinder Morgan.

Commissioners Rod John-son of Sutton and Jerry Vap of McCook opposed the ap-proval. The new rates will become effective Jan. 1.

The Houston-based company originally had requested increases of $11.05 million a year; this increase would net $8.25 million instead.

"Nobody likes a rate increase," said Commission Chairman Lowell Johnson. "This decision was reached after listening to rate payers, consultants, the Public Advocate and company representatives."

Commissioner Vap ex-pressed concern about Nebraskans facing other rising costs, such as such as water, sewer and electricity and how those increases are going to affect their quality of life.

Beginning Jan. 1, the residential customer charge will increase to $6. Small commercial customers will pay $8 and large commercial customers, $18.

These charges will in-crease gradually over the next two years, topping out in 2009 at $10 for residential, $12 for small commercial and $22 for large commercial customers. Under terms of the settlement, Kinder Mor-gan cannot request another rate hike until 2009.

As the company interim rates represented only 70 percent of its full requested increase, no refunds are owed to customers, according to press release by the Public Service commission.

The Commission received about 3,000 e-mails, signed petitions, telephone calls and letters from Kinder Morgan customers, following the an-nouncement of the the company's rate increase application.

The decision on the rate settlement followed a series of eight hearings in late November and early Decem-ber in Kinder Morgan-served communities. Kinder Mor-gan filed for the increase, the first in 13 years, June 6.

The company serves 94,000 residential customers in Nebraska.