March 09, 2017

Comment Period and Member Meeting Regarding Natural Gas Rate Revisions

Midwest Energy is considering changes to its natural gas rate schedules as described below.  This is not a general rate increase proposal, but could impact bills for irrigation, grain drying and industrial customers who buy gas from Midwest Energy. 

Midwest Energy is charged for “upstream capacity” by interstate pipeline companies that deliver gas to the local pipeline system.  Upstream costs are currently passed on to irrigation, grain drying and industrial sales service customers if gas is used only during the winter months.  The proposal will pass through upstream costs regardless of season beginning in January 2018.  This change will not affect transportation service customers who buy natural gas from third parties.  Midwest Energy was subject to a rate increase from Tallgrass Interstate Gas Transmission in June 2016 which significantly increased its upstream capacity charges.  If the proposed changes are approved, this flow-through of upstream capacity charges is estimated to be $.15 to $.20 per therm for sales service customers during non-winter months in 2018.

The Board of Directors will consider and vote on the proposal at an open member meeting on Monday, May 15, 2017, at 1 p.m., at the Midwest Energy Office, 1330 Canterbury Dr., Hays, Kansas.  Members may submit comments no later than Friday, May 5 by email to Patrick Parke, or by calling 785-625-1405.

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