PSO moves ahead with $730 million gas acquisition

 

Public Service Company of Oklahoma is asking for a protective order regarding some of its confidential information provided  to state regulators on the firm’s proposed acquisition of the Green Country natural gas operation.

PSO announced some weeks ago of its intent to acquire the operation in a $730 million purchase. It also is seeking approval from the Corporation Commission for the acquisition.

If approved, it would result in a net increase of $72.5 million in rates for PSO customers in the first year or a 3.84% increase in what the utility calls “total retail jurisdictional bills.”  But residential customers would experience a 5.44% increase in their monthly bills, averaging another $7.24 more a month, according to information from PSO testimony on file in the case.

As described by PSO witness Matthew Horeled, PSO is requesting the Commission issue an order approving a rider to recover the annual revenue requirement of Green Country until PSO implements new rates in the next base rate case.”

PSO explained in its filings that it intends to use the AEP Utility Money Pool and short and long-term debt to finance the purchase. If additional authority is required, PSO indicated it will ask for the “appropriate financial authority from the Oklahoma Corporation Commission upon approval of the purchase of Green Country.”