Oklahoma Corporation Commissioners might decide this week whether to allow a pilot tariff project to allow Oklahoma Natural Gas Company to begin offering renewable natural gas.
Commonly referred to as RNG, the gas is produced from landfills, wastewater treatment facilities and what are known as anaerobic digesters. It also costs more to produce than natural gas. However, RNG reduces greenhouse gas emissions that would be emitted from using the same amount of conventional natural gas.
ONG’s request for the pilot tariff project falls in line with a 2021 Act approved by the state legislature which required the Corporation Commission to make recommendatons regarding the use of renewable natural gas by consumers.
“The purpose of the pilot opt-in tariff related to RNG is to allow costs for RNG over time to shift to customers who specifically choose to purchase the environmental attributes related to RNG,” stated Cory Slaughter, Director of Rates and Regulatory at ONG. His testimony is on file with the Commission.
The reduction of greenhouse gases through the use of RNG makes it attractive to those concerned about the environment. Slaughter said gases such as methane from landfills or water treatment plans that would otherwise be released into the atmosphere ae captured and used in place of convention gas.
The pilot program would involve a $5 million startup cost for the program. If approved by state regulators, the RNG program would be “completely optional and on a voluntary basis,” according to Slaughter’s testimony.
ONG wants to carry out a 3-year period to assess the results of the program. The utility conducted a customer survey in recent months and reported the response showed 1 in 3 or 31% “of Oklahoma Natural customers would be willing to pay 10% more for RNG.”
