Extreme cold and snowy weather left Oklahoma utility companies pleading for help from consumers and regulators as they are facing a potential shortage of natural gas for home heating purposes. State regulators might hold an emergency meeting on Monday, a federal holiday to help respond with possible increased allowable production of natural gas.
As a snow storm raged across the state on Sunday, the Corporation Commission issued a request from utilities asking consumers to lower their natural gas and electric use as “several power plants in the state use natural gas.”
The notice from regulators came reportedly as Corporation Commissioners sought legal advice from Attorney General Mike Hunter to hold an emergency meeting on Monday to consider changing the authorized output of natural gas wells beyond the 50% currently in effect.
It’s believed the Secretary of Energy as well as Oklahoma Natural Gas and the Public Utilities Division of the Corporation Commission were also involved in attempting to take emergency action to alleviate the situation.
Commissioners are set to meet Thursday for a regular meeting at which time the Commission staff, in a Feb. 11 filing, recommended an increase from the 50% to 75%. But the need for increased production of natural gas from wells in the state is immediate and there’s a belief the utilities cannot wait until Thursday as temperatures are in the single digits and expected to remain that way for a few more days.
The Commission voted last year to lower the rate to 50% and did so on a 2-1 vote with Commissioners Todd Hiett and Dana Murphy favoring the reduction in allowable production while Commissioner Bob Anthony opposed it, saying the free market system should be allowed to work.
Late Sunday, Commissioner Anthony issued a statement saying he supports lifting the current prorationing restrictions that interfere with Oklahoma natural gas producers’ ability to provide needed gas supply.
“Allowing wide-open production appropriately responds to today’s emergency,” he stated.
As the Commission staff pointed out in its recommendation, “supply has fallen even more than demand and gas prices have risen since April 2020.”
However, their recommendation came as a major winter storm was barreling over the state and before any apparent shortage of natural had developed in the state.
The Corporation Commission on Sunday, acting on behalf of the utilities asked consumers to lower their thermostats to at least 68 degrees, avoid using high-energy appliances like washers, dryers and dishwashers and to unplug unused small appliances which still draw electricity even when not in use.