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 |
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