The AARP Oklahoma wasn’t bluffing when it told members this week during a telephone town hall that yet another increase is coming from Public Service Company of Oklahoma, even as state regulators are considering a previous rate hike request.
PSO filed a notice seeking approval from the Oklahoma Corporation Commission for what is known as a Net Operating Loss Carryforward. If approved it will mean a 4% increase or another $5 in the monthly bill of a typical residential customer.
As defined, a Net Operating Loss Carryforward allows businesses suffering losses in one year to deduct them future the profits of future years. It means businesses are then taxed on average profitability, making the tax code more neutral.
A notice of hearing filed by PSO and published in newspapers of record stated the revenue requirement consists of about $33.5 million NOLC revenue requirement and the calculation was based on an effective date of November 2024.
The publication explained that for all customers, the monthly Tax Change Rider factor will be 5.67% of the non-fuel portion of the bill. The exact total of the request is $33,474,829 and the value increases by $2,040,321 a month on the effective date of rates from the case, according to testimony on file with the Corporation Commission.
PSO proposed a 12-month amortization period for cost recovery of the accumulated $33.5 million NOLC revenue requirement. But the Attorney General opposes the 12 month and called for a 36 month recovery period.
“The Commission should remove the entire $175,020,219 NOLC Accumulated Deferred Income Tax DTA that PSO requested on a go-forward basis, as PSO has not substantiated that any of this balance is related to accelerated tax depreciation and may be largely related to Winter Storm Uri gas costs not subject to tax normalization,” argued one Attorney General’s expert in testimony.
A hearing has already been scheduled for November 5 at 9:30 a.m. before the three Corporation Commissioners. The public will have an opportunity to offer comments at the time.
The PSO NOLC case is PUD2024-000032.
