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Lowering Your Gas Bill is Possible!

Tuesday, June 20, 2017   (0 Comments)
Posted by: KRHA
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If you pay $5,000-$7,000 annually to Kansas Gas Service (KGS) for natural gas, you may qualify for an optional service that provides 18-20 percent relief in your cost of gas.  Best of all, there are no changes to infrastructure or expenses to participate.  If KGS is your natural gas utility, a recent change in their tariff options opens the door for you to qualify for lower natural gas rates through a third-party supplier.  Qualifying KRHA members that have recently taken advantage of the program are seeing reduced cost for their natural gas of 18 to 20 percent.


What is the program and how does it work?

If you are paying the full retail rate, your business is classified as a “Sales Gas Customer” by KGS.  Qualified businesses may move to a transportation rate.  The program known as Transportation, is an optional service where your third party natural gas marketer is responsible to deliver gas to KGS on your behalf.  That gas is then picked up by KGS and delivered to you, as it has been in the past.  You remain a customer of KGS.  The only difference – your natural gas is supplied to KGS by a third party marketer and KGS moves that gas to you on their system.  You continue to pay KGS for the movement of the gas on their system along with the monthly meter fee.


Why do commercial and industrial customers take advantage of the program?

The savings program has been around for more than 25 years and has been available to the largest commercial and industrial users of natural gas.  Your marketer will usually charge based on a market index plus an adder to cover the cost of moving the gas to KGS on the same interstate pipelines.  The spread between the total cost of gas from KGS and the Index plus adder becomes your savings. The blue area highlighted in the table below illustrates the Base Cost of Gas from KGS along with the applicable adjustments and charges provided in their Cost of Gas Rider, Weather Normalization Adjustment Rider and Ad Valorem Tax Surcharge Rider. These charges drop off when you move to transportation service.







Who may participate in the program?

Annual usage of more than 800 MCF of natural gas qualifies a commercial or industrial customer.  Meters on contiguous properties may be consolidated to qualify for the program.  The short answer, if you have paid pay $5,000-$7,000 annually to KGS for natural gas you will most likely qualify.  If you have meters that are side by side, across the street or next door to each other they may be combined to qualify for the program.


You have a member partner that has worked with other KRHA businesses.


 CenterPoint Energy, in business for 130+ years, serves a wide range of commercial and industrial customers in Kansas and Missouri along with 31 other states, with transport natural gas.  Our customers include Cessna, Spirit Aero Systems, and Wesley Hospital to name a few.  Want to know if you qualify for the program—without charge?  Reach out to Marc Caine 316.312.2937 or Anne McGregor 816.590.4755 for details.


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