Hanson v. Kansas Corp. CommissionAnnotate this Case
The Supreme Court affirmed the judgment of the lower courts that a natural gas utility company's invoicing practice was "unjust, unreasonable, [or] unfair" under Kan. Stat. Ann. 66-1,206(a), holding that the lower courts reached the correct conclusion.
Plaintiffs complained to the Kansas Corporation Commission about Texas-Kansas-Oklahoma Gas, LLC's (TKO) billing practices. The Commission decided that Plaintiffs failed to carry their burden of proving that TKO's rates or practices with regard to them were unreasonable. On review, the district court agreed with Plaintiffs and remanded the case to the Commission to calculate how much TKO overbilled Plaintiffs. The court of appeals agreed that the Commission erred in its analysis of TKO's billing methodology but altered the district court's refund directive and ordered the Commission to decide an appropriate remedy. The Supreme Court affirmed, holding (1) TKO's calculating method constituted an unlawful practice; and (2) the case is remanded to the Commission to fashion an appropriate remedy.