) subsidiary, Kansas Gas Service has filed for a rate increase with
the Kansas Corporation Commission ("KCC") to recover the
investments made by the company to develop its natural gas pipeline
infrastructure and facilities. The rate hike, if approved by the
KCC, is expected to increase the company's revenue by $32.7
million, which includes a base rate hike of $50.7 million and $18
million decrease in amounts currently recovered through
The company's proposed rate hike, if implemented, will result in
a monthly increase of $5.68 or 9.1% for a typical residential
customer. An average commercial customer, with annual natural gas
consumption of 288 thousand cubic feet ("Mcf"), will not experience
any bill increase. Last time, the company hiked its rates in
Since the last rate increase, the ONEOK unit has invested $250
million to upgrade its natural gas distribution pipelines, and
replaced and relocated natural gas meters in several cities in
Kansas including Hope, Kowa, Mankato, Osawatomie, Russell, Stafford
and St. John. This had enabled the company to cover a total area of
18,000 miles in Kansas.
Utility providers invest substantial amounts for implementation
of modern technologies and infrastructural developments, intended
to provide uninterrupted and regular gas supply to its consumers in
the long run. As of December 31, 2011, the company had a 632,000
strong customer-base with natural gas distribution market share of
67% in the Kansas area.
ONEOK Inc. currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating.
Based in Tulsa, Oklahoma, ONEOK Inc. is a diversified energy
company, operating as a natural gas distributor primarily in the
United States. The company competes with
OGE Energy Corporation
OGE ENERGY CORP (OGE): Free Stock Analysis
ONEOK INC (OKE): Free Stock Analysis Report
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