Nov. 7--More than 1,000 Nebraskans have filed protests to an increase in natural gas rates proposed by Kinder Morgan Inc., the private utility that serves most of the state west of York.

The increase in residential and commercial rates would bring in $11 million. It would more than double -- and in some cases more than quadruple -- the basic monthly charge that residential customers pay Kinder Morgan.

The utility has added some sweetener to its rate increase request. It is proposing a $300 credit for qualified purchases of high-efficiency furnaces.

Kinder Morgan is seeking the rate increase for two primary reasons, said Gene Roland, the utility's Nebraska spokesman.

First, the utility hasn't increased its rates in 13 years, and it simply needs to catch up with inflation.

Second, like other utilities, Kinder Morgan is seeking to change how it charges customers by putting more of its fixed costs into the monthly fee charged to all customers.

In doing so, Kinder Morgan also would generally lower a separate fee that is charged for the use of natural gas. The net effect is estimated to be a $5.25 increase in the average monthly residential bill.

The Nebraska Public Service Commission has scheduled hearings across the state on the proposed increase. Commissioner Jerry Vap said he anticipates a decision in late January.

The first portion of the proposed increase already has gone into effect because state law allows private utilities to raise rates while regulators decide whether to grant the increase. Should the state order a smaller increase, Kinder Morgan would credit or refund customers the difference.

If approved as is, Kinder Morgan would have the highest monthly fee among the state's major gas utilities, ranging from $13.50 to $15.50 for residential customers.

Metropolitan Utilities District, which serves much of the Omaha area, charges its customers $10 a month. Aquila, which serves most of eastern Nebraska, charges $11.

The rate increase does not apply to the actual cost of natural gas. That price is set by gas wholesalers and accounts for about 75 percent of a customer's heating bill.

Derick Dahlen, a consultant retained by the Office of Public Advocate, which represents consumers, said the rate filing effectively shifts about 70 percent of Kinder Morgan's fixed costs onto the monthly fee.

Dahlen said the impact of the rate changes would fall most heavily on those who use the least gas.

Commercial customers also would see significant increases in monthly fees. The utility is proposing monthly commercial fees of $22.10 to $24.10, depending upon the customer. That's an increase of three to more than five times the current fee.