Public Service Company of Oklahoma Seeks $156 Million Rate Increase

Public Service Company of Oklahoma filed a $156 million rate increase request with the Oklahoma Corporation Commission on Friday. The increase, if approved, equates to an 11 percent jump. For the typical residential electric customer, PSO estimates the increase will be nearly 50 cents per day, according to a company press release.

With the latest rate application, PSO aims to update its prices to reflect the costs of system investments to strengthen the electric grid, meet federal environmental requirements and better serve customers. The company stated its current prices are based on costs from 2014 and early 2015.

PSO’s price adjustment request reflects more than $625 million of new investments which aren’t included in current prices. Costs to comply with mandated federal environmental regulations make up approximately $225 million or more than one-third of PSO’s total investment. The company also cites a significant investment in rolling out digital meters over a three-year period at a cost of $111 million to more than 530,000 customers.

“PSO is committed to investing in a stronger, smarter and cleaner energy grid, and providing customers the highest quality, safe and efficient service they rely on to power their homes and businesses,” said Stuart Solomon, PSO president and chief operating officer. “At the same time, we’re working to be as efficient as possible and will continue to provide excellent power reliability at prices that remain significantly below national averages.”

PSO filed a $132 million rate increase with the OCC in July of 2015. When the utility failed to receive regulatory approval within a six-month period as set by law, PSO commenced an interim $65 million rate increase to customers effective January 2016. Last November, the Commission approved a $19 million rate increase and ordered a refund of the excess collected funds through the October billing cycle.