A nearly $27 million rate reduction for Oklahoma Natural Gas customers has been approved by Oklahoma Corporation Commissioners.
Commissioners on Tuesday voted to support the stipulated agreement in which ONG rates will be connected to different performance metrics.
Under the approved plan, some of the return to customers will include over collections by ONG. The company explained that residential customers will see credits on their bills in the coming 12 months. The credits will total about $1.47 each month to make up for the over collections.
Commercial customers will also get credits for the over collections. ONG indicated the credits for its customers will total nearly $15.6 million.
The over collections occurred due to the Tax Cuts and Jobs Act of 2017 which reduced corporate income tax rates from 35% to 21%. As a result of the tax rate reduction, ONG collected more revenues for taxes than the company actually owed in 2018.