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Natural Gas > Kansas-Nebraska (KN) Method

The following information is about Kansas-Nebraska (KN) Method.

Kansas-Nebraska (KN) Method Defined

A method used to functionalize Administrative and General (A&G) costs. The "KN Method" initially classifies A&G costs as being related to either labor, gas plant, or other. The expenses classified as "other" are allocated to labor and plant on a pro rata basis. This pro rata basis is determined by the ratio of the total labor-related A&G costs and the total plant-related A&G costs to the total of both plant and labor-related A&G costs.

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