Oklahoma Legislators File Bills to End Utility Interim Rates

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Two bills filed with the Oklahoma Legislature would put an end to interim rates for regulated utilities during lengthy rate cases, according to a report in The Oklahoman.

Sen. Nathan Dahm, R-Broken Arrow, has authored Senate Bill 282 while Rep. Pat Ownbey, R-Ardmore, submitted House Bill 1891. Both bills aim to stop interim rates if the underlying rate case isn’t resolved within 180 days.

The bills were filed in response to actions taken in two recent rate cases involving Oklahoma Gas and Electric Co. and Public Service Co. of Oklahoma. In these cases, two separate administrative law judges ruled that the interim rates were too high. According to current regulatory rules, interim rates are subject to refund with interest.

PSO’s latest rate case took 18 months and ended with a commission vote in November approving a $14 million rate increase, a sharp reduction from the $130 million initially requested by the utility in July of 2015, according to The Oklahoman.

PSO collected about $65 million in higher interim rates since January 2016. PSO customers are now receiving a rate refund on monthly bills until October.

The Oklahoma Corporation Commission allows regulated utilities to seek interim rates during pending rate cases. Some rate cases have taken as long as three years to receive final approval of the regulatory commission.

OG&E filed its latest rate case in December of 2015, seeking a $92.5 million increase. A final decision has not yet been rendered by the commission although an ALJ recently recommended an increase of $40.7 million. Since July, OG&E customers have been paying $69 million in higher interim rates. An appeals hearing on the ALJ’s recommendation is scheduled for February 2.