The Kansas Corporation Commission (KCC) instructed Kansas Gas Service (KGS) to return just over $17.9 million in tax savings to its customers in an order issued Monday. For residential customers, that will mean a one-time bill credit of $22.78.

The savings resulted when the Federal Tax Cuts and Jobs Act reduced the corporate tax rate from 35 percent to 21 percent in January of 2018. The KCC required utilities to track savings resulting from the tax cut and maintain those funds in a separate interest bearing regulatory account pending Commission review.

In a rate case filed in June, KGS asked to retain the accrued tax savings to offset its cost of service. The Commission determined that was not in the public interest and as Monday’s order states, “KGS has provided no evidence that returning the regulatory liability to its customers will endanger KGS’s health and viability in providing reliable, sufficient and efficient service”.

The order can be viewed on the Commission’s website.