(Date of report) | December 23, 2013 |
(Date of earliest event reported) | December 19, 2013 |
Oklahoma | 001-13643 | 73-1520922 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) | ||
Item 8.01 | Other Events | |
On December 19, 2013, the Kansas Corporation Commission (KCC) approved a settlement agreement between ONEOK, Inc. (ONEOK), the staff of the KCC, and the Citizens’ Utility Ratepayer Board for the ONE Gas, Inc. (ONE Gas) separation from ONEOK. Among other things, the terms of the settlement agreement include the following: •Kansas Gas Service shall not change its base rates prior to January 1, 2017. The time limitation on filing a general rate case to change base rates does not preclude Kansas Gas Service from changing rates or tariffs to recover appropriate costs under its current approved riders and tariffs, including its Cost of Gas Rider, Annual Cost Adjustment, Weather-Normalization Adjustments, Ad Valorem Tax Surcharge and Gas System Reliability Surcharge tariffs; •Kansas Gas Service will expense certain costs associated with ONEOK’s acquisition of Kansas Gas Service in 1997 that previously have been recorded as a regulatory asset and are being amortized and recovered in rates over a 40-year period. As such, we expect to record a noncash charge to income of approximately $10.2 million before taxes in the fourth quarter 2013; •The level of pension and postretirement benefit costs used to calculate Kansas Gas Service’s Pension and Other Postretirement Benefit trackers shall be adjusted to $13.6 million from $16.6 million with a corresponding reduction to revenues; and •ONEOK agrees to make a one-time contribution to 501(c)(3) organizations of $1.2 million to provide financial assistance for weatherization of housing for low income natural gas customers of Kansas Gas Service. The agreement authorizes the transfer of ONEOK’s existing Kansas natural gas distribution assets, certificates of convenience and necessity, franchises and tariffs to ONE Gas conditioned upon the completion of the separation. Completion of the separation is subject to certain conditions, including final approval from the ONEOK Board of Directors. The news release announcing the KCC’s approval of the settlement agreement is attached as Exhibit 99.1 and incorporated by reference herein. | ||
Item 9.01 | Financial Statements and Exhibits | |
(d) | Exhibits | |
Exhibit Number | Description | |
99.1 | News release issued by ONEOK, Inc. dated December 19, 2013. | |
ONEOK, Inc. | |||
Date: | December 23, 2013 | By: | /s/ Derek S. Reiners |
Derek S. Reiners Senior Vice President, Chief Financial Officer and Treasurer | |||
Exhibit Number | Description | |
99.1 | News release issued by ONEOK, Inc. dated December 19, 2013. | |