OGE agrees to lower its $332 million rate hike request before Oklahoma regulators

The $332.54 million rate hike requested by Oklahoma Gas and Electric company and being considered by the Oklahoma Corporation Commission has been reduced but the impact on residential customers will still be another $13 more a month.
In a filing with the Securities and Exchange Commission, OG&E indicated the initial filed request will be reduced resulting in a total base rate increase of $126.66 million. The reduction was part of an agreement reached with a number of parties including
the Corporation Commission’s Public Utilities Division, Attorney General, Oklahoma Industrial Energy Consumers, OG&E Shareholders, Walmart, Federal Executive Agencies, Oklahoma Association of Electric Cooperatives and the Petroleum Alliance of Oklahoma.
The Corporation Commission will meet Monday morning to consider the agreement and the reduced rate hike.
Under the agreement, OG&E will increase its existing senior citizen discount program by $60 a year.
One focus of the utility’s request was Vegetation Management Expense such as tree trimming. Under the stipulated agreement, OG&E’s base rate level of vegetation management expense will be $38.22 million a year. It will also be required to submit an annual report to the Commission’s Public Utility Division detailing OG&E’s vegetation management spending and activities.
Issue Reduction
Update revenue requirement to reflect known and measurable changes as of March 31, 2024 $19.35 million
Return on equity – No increase (9.50%) $51.13 million
Depreciation expense – FEA Production, PUD Transmission, OIEC Intangible, No change for Distribution and General plant $74.19 million
Pension Regulatory Asset Amortization – 15 years $6.81 million
Coal Inventory $6.73 million
Insurance Expense $0.07 million
Dues and Memberships $0.63 million
Short Term Incentives – 50% Recovery $7.64 million
Long Term Incentives – 0% Recovery $8.96 million
Vegetation Management – $4 million increase to base rates $20.00 million
Payroll Capitalization Ratio $6.08 million
Directors and Officers Liability Insurance – 50% Recovery $0.61 million
Investors Relations Expense – 50% Recovery $0.37 million
Board of Directors Compensation – 50% Recovery $1.45 million
Severance Expense $0.53 million
Ad Valorem Tax Expense $0.88 million
Transmission/Wind Allocation Impact on Rev. Req. & Misc. $0.45 million