A rural electric cooperative in northern Oklahoma is asking state regulators to approve a nearly 5% rate hike or $4.5 million a year in revenue. It also contends it hasn’t had a rate hike in 10 years and can no longer provide a safe and reliable electric system.
The request by the Northeast Oklahoma Electric Cooperative, Inc., headquartered in Vinita, is to increase rates to produce additional revenues in the amount of $4,504,550. It amounts to an increase in rates of 4.63% which, according to the filing with the Oklahoma Corporation Commission, “equates to an approximate 5.93% rate of return on rate base for the test year ending February 29, 2024.”
NOEC filed its Notice of Intent last month and the detalis of the request were made in the additional filing on August 26. The Cooperative explained that its “investment in plant and operational expenses have increased over the past several years since NOEC last sought a general review of its rates, which was more than ten (10) years ago.”
NOEC said the increases in its cost structure have created the need for a general rate adjustment. It also claimed it is “currently earning less than a sufficient return on the plant, property, and other other assets required to maintain a safe and reliable electrical system.”