Customers of Tulsa-based Public Service Company of Oklahoma will pay more for electricity beginning in May as the utility adjusts its fuel factor to reflect higher prices for power and natural gas, according to a company press release issued Thursday.
The fuel factor is based on predicted fuel and power costs. Since actual fuel costs vary from predicted costs, periodic adjustments to the fuel factor are required.
“We understand any change to rates can be concerning for customers,” said Steve Fate, PSO Vice President – Regulatory and Finance. “But it is necessary to adjust for the higher fuel prices now to help avoid larger increases later.”
By law, public utilities are prohibited from making a profit on fuel and purchased power costs.
For a residential customer who uses 1,100 kilowatt-hours of electricity each month, the fuel factor adjustment will increase their monthly bill by approximately six dollars per month.
PSO will review its fuel factors again in October to determine if further adjustments are necessary.
