OG&E rates unchanged under proposed deal
Oklahoma Gas and Electric Co. reached a proposed agreement with regulators and other interested parties in a pending rate case that would leave rates unchanged for its customers, for now.
The proposed agreement, announced by Oklahoma Attorney General Mike Hunter on Friday, was reached between the regulated utility and the Public Utility Division of the Oklahoma Corporation Commission, AARP of Oklahoma, Oklahoma Industrial Energy Consumers, the federal government and Walmart.
OG&E filed a rate increase request in December that asked for about $78 million.
In April, Hunter' s office submitted testimony from an expert witness that asserted OG&E actually should reduce its rates by $32 million.
On Friday, Hunter stated in the release he was pleased that an agreement had been reached that protects the utility's customers.
“Our ultimate goal is to ensure customers aren't paying a penny more than they should for electric services,” Hunter stated. “Thanks to the commitment of all sides coming together, working hard and negotiating on behalf of OG&E customers, we were able to put ratepayers first and prevent higher rates this summer.
“We appreciate OG& E' s willingness to come to the table with us for negotiations and do what is best for its customers.”
Sean V os kuhl, AA RP Oklahoma's state director, also celebrated the agreement, noting it will prevent increased customer charges that had been initially proposed.
“With summer months and Oklahoma's extreme heat coming, budget for higher utility costs is extremely challenging, especially for older adults and those with low or fixed incomes,” Voskuhl said.
“This becomes a critical pocketbook issue for Oklahomans. Individuals struggling to pay for food, housing and medicines
cannot afford to see a significant increase in their utility bills, particularly when it is not justified.”
Utility spokesman Brian Alford said Friday t he utility is pleased with the pending settlement, which will be considered by an administrative law judge at t he commission on Wednesday. It also must be approved by elected commissioners.
While the deal does not include money the utility sought to compensate it for depreciation expenses and does not include the increase it requested on its return on investment, it does allow the utility to recover its costs for adding scrubbers at the Sooner Plant and converting two of its power trains at the Muskogee Plant from coal to natural gas.
The reason customers won't see an increase in rates, he said, is that they also are enjoying energy cost reductions related to the utility's decision to end costly power purchase agreements previously in place with AES Shady Point and Oklahoma Cogeneration.
The utility recently obtained approval from regulators in Oklahoma, Arkansas and the federal government to buy those facilities and incorporate them into its power-generating fleet.
Al ford said the settlement, if approved, effectively will end nearly a decade's worth of work the utility had undertaken to meet federal clean air requirements.
“We are pleased to have put that issue behind us,” Alford said.