OG&Amp;E Rate Increase Likely to Cost You $3 More a Month
Posted on: Wednesday, 14 December 2005, 21:00 CST
By Adam Wilmoth, The Daily Oklahoman, The Daily Oklahoman
Dec. 14--The Oklahoma Corporation Commission on Tuesday approved a $42.3 million rate increase for Oklahoma Gas and Electric Co.
The rate hike is expected to increase the average OG&E residential customer's rates by about $3 a month. The new rates are scheduled to become effective in January.
OG&E praised the commission for the increase Tuesday, but said the amount is too small and will require the company to reduce planned electric system upgrades and expansion projects.
"We proposed reasonable funding of our investment that would keep our customers' electric rates below the national and regional averages," said Steven E. Moore, chairman, president and chief executive officer of OG&E parent OGE Energy Corp.
"In order to ensure the long-term reliability of our system, we need to invest additional dollars and will need additional rate relief in the not-too-distant future."
The state's largest electric utility in May asked for an $89 million annual rate increase. The attorney general's office, however said the company's rates instead should be reduced by $24.5 million. The industrial consumers called for a reduction of $31 million, and the Oklahoma Corporation Commission staff suggested an increase of $13 million.
Assistant Attorney General Bill Humes on Tuesday expressed disappointment about the ruling.
"We thought the increase was too much," he said.
"I say that considering not only our position, but also the original position of the commission staff."
The order also drew criticism from the AARP.
"AARP is disappointed that Oklahoma residential ratepayers will be facing yet another utility rate increase," said Bob Bristow, AARP Oklahoma state president.
"The timing couldn't be worse for many Oklahomans who are already facing difficulties paying their utility bills."
The commission order endorsed a proposal by the attorney general's office, Corporation Commission staff and the industrial consumers that would more evenly distribute the rate increase among OG&E customers.
OG&E's plan would have given large industrial customers the largest increase because, the utility said, those customers historically have paid less than their share of the cost.
As adopted, residential customers bear the largest increase, and the base rates for many small businesses will remain unchanged.
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Source: The Daily Oklahoman
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