Regulators and wrecker industry consider other changes following new towing rates

 

Even after new rates were increased for nonconsensual towing in Oklahoma on June 1, the Oklahoma Corporation Commission and the towing industry in the state are exploring other improvements.

At the request of the Attorney General, the commission’s Transportation Division launched a Notice of Inquiry early this month. As a result, OCC officials have been meeting with wrecker service individuals from across the state and discussing possible other areas to make changes.

As Commission spokesman Trey Davis explained, “The Notice of Inquiry was initiated in case no. GD 2024-000002, and it is related to how the Commission may go about gathering data to establish new rates in the future. It is expected to lead to a report that makes recommendations to the Commission about how we can improve the rate making process for the wrecker industry.”

Michael Copeland with the Division told Corporation Commissioners early in July that the “conversations are productive and might lead to meaninful recommendatons to improve the fairness and efficiency of rules and regulations.”

He doesn’t expect any new rule to be adopted this year as a result of the meetings and communications with the wrecker industry. A report is expected in a few months.

After Commissioner Kim David questioned about a timetable for something to come out of the meetings, Copeland answered  “probably a September time-time would be enough.”

“A wise move,” commented Commission chairman Todd Hiett.

The issue was considered at the commission’s July 2 meeting but since it had not been legally posted for a possible vote, the matter was continued.

What are described as “nonconsensual tows” saw rates increased June 1 by 33%, largely because they had not been considered for several years and were impacted by inflation. The “nonconsensual” tows are those where the vehicle owner is not present to give permission. An example might be a tow that is needed for a wrecked vehicle.

The Commission’s Transportation Division and AAAA Wrecker agreed the increase was “reasonable and in the public interest” to maintain towing services. The new rate will mean a $4.99 per mile cost for consumers for 25 miles or less. For tows more than 25 miles, the new rate is $4.16 per mile.