Attorney General Gentner Drummond commended the Oklahoma Corporation Commission (OCC)recently for supporting his effort to halt a residential utility rate increase requested by Arkansas Oklahoma Gas Corporation (AOG).
In April, AOG filed a rate change application requesting a major base rate increase that would have resulted in an average monthly increase of $6.40 for each of the company’s residential customers.
Following months of litigation, hearings before an Administrative Law Judge and an appeal before the Commissioners themselves, the OCC approved 2-1 a final order that reflects zero increase for ratepayers.
Drummond commended Corporation Commissioners Todd Hiett and Kim David for their vote.
“AOG’s residential consumers should not have to pay more. AOG’s last increase, which became effective in the beginning of 2023, is already more than enough,” he said. “I take seriously my role of representing Oklahoma ratepayers and I’m pleased that AOG customers will not have to pay higher rates for natural gas next year.”
He noted that the revenue deficiency claimed by AOG in the filing was smaller than the revenue increase approved in last year’s filing, which took effect in January 2023. The revenue increase authorized in the last filing resolves the deficiency the company has again claimed in the present case. The Commission not only rejected the requested increase, but it made changes to AOG’s terms of service to ensure AOG accounts for all its revenues before seeking future increases.
The final order also reduces AOG’s incentive compensation expenses that can be recovered from ratepayers, as advocated by the Attorney General.