ONE Gas, Inc. (NYSE:OGS) Files An 8-K Regulation FD Disclosure

ME Staff 8-k
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ONE Gas, Inc. (NYSE:OGS) Files An 8-K Regulation FD Disclosure
Item 7.01

Regulation FD Disclosure

On June 29, 2018, ONE Gas, Inc. (NYSE: OGS) announced that its Kansas Gas Service division filed a request with the Kansas Corporation Commission (KCC) for an increase in its net base rates by $42.7 million. Since its last adjustment to base rates in January 2017, Kansas Gas Service has invested approximately $179 million in its natural gas distribution system. A copy of the news release is attached as Exhibit 99.1 and is incorporated herein by reference.

The information disclosed in Item 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Actexcept as expressly set forth by specific reference in such filing.

Item 8.01

Other Events

ONE Gas, Inc. announced today that its Kansas Gas Service division filed a request with the KCC for an increase in its net base rates by $42.7 million. Since its last adjustment to base rates in January 2017, Kansas Gas Service has invested approximately $179 million in its natural gas distribution system. Kansas Gas Service’s request, if approved, represents a net base rate increase of $42.7 million. Kansas Gas Service is already recovering $2.9 million from customers through the Gas System Reliability Surcharge (GSRS), resulting in a total base rate increase of $45.6 million.

This request would increase the average residential customer’s natural gas bill by $5.67 per month.

The benefits of the corporate income tax cuts associated with the new federal legislation that went into effect earlier this year are also reflected in the company’s filing.

The filing is based on a 10.0 percent return on equity and a 62.2 percent common equity ratio.The filing represents a rate base of $1 billion, compared with $947 million included in existing base rates plus previously approved GSRS-eligible investments. Since the last general rate case, Kansas Gas Service has invested $179 million in its systems and facilities.

The portion of the bill associated with the cost of gas, which represented 42 percent of the average residential bill in 2017, is not impacted by this filing. The cost of gas continues to be passed through directly to the customer with no markup. Kansas Gas Service’s filing also includes a Revenue Normalization Adjustment that is designed to ensure that the company collects the amount of revenue set by the KCC from residential, general sales and small transport customers, regardless of customer usage.

In accordance with Kansas law, the KCC has 240 days to consider Kansas Gas Service’s filing.

Item 9.01

Financial Statements and Exhibits

(d)

Exhibits

Exhibit

Number

Description

99.1

News release issued by ONE Gas, Inc. dated June 29, 2018.


ONE Gas, Inc. Exhibit
EX-99.1 2 ogskgs2018ratecasenr.htm EXHIBIT 99.1 Exhibit Exhibit 99.1June 29,…
To view the full exhibit click here

About ONE Gas, Inc. (NYSE:OGS)

ONE Gas, Inc. is an independent natural gas utility in the United States. The Company is a natural gas distributor in Oklahoma, Kansas and Texas. The Company operates in one segment: regulated public utilities that deliver natural gas to residential, commercial, industrial and transportation customers. The Company provides natural gas distribution services to approximately two million customers through its divisions in Oklahoma, Kansas and Texas. The Company’s distribution markets in terms of customers are Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita and Topeka, Kansas, and Austin and El Paso, Texas. The Company’s divisions include Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service. Its divisions, Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service distribute natural gas as public utilities. It caters to residential, commercial and industrial, transportation, and wholesale and public authority customers in over three states.