(KAIR)--A settlement agreement has been approved regarding the Kansas Gas Service rate case.

A release says the Kansas Corporation Commission, Thursday, approved the agreement, which means the $58.1 million net revenue increase originally requested by KGS was reduced to $35 million. The bill impact to residential customers, with average usage, is an increase of approximately $3.83 per month or $46.02 per year. The new rates will take effect on November 1.

According to the release, Kansas Gas Service withdrew its proposal to implement two different rate structures based on high or low usage. That proposal, which was opposed by KCC staff and the Citizens Utility Ratepayer Board, would have resulted in a residential rate increase of approximately $6.71 per month for customers using less service per month, or $9.48 more per month for those residential customers using more.

A proposal to implement a performance-based ratemaking mechanism to annually adjust rates was also withdrawn by KGS after facing opposition from the two entities.

In its March application to increase rates, KGS noted it had been five years since its last rate case and the company had invested $600 million in capital expenditures necessary to provide safe and reliable service to customers.

In testimony filed in support of the settlement approved Thursday, KCC staff stated that the agreed upon revenue increase strikes the proper balance between KGS’ desire for reasonable assurances that it will meet its financial obligations and the need to keep rates as low as possible for customers while still providing reliable natural gas distribution service.