The Oklahoma Corporation Commission (OCC), on a vote of 2 to 1, approved the interim OG&E rates the utility has been charging customers since July 1, 2024.
“It’s important to note this is not a new rate increase,” said Oklahoma Corporation Commission Chairman Kim David.
“The approved rates are substantially lower than the increase OG&E originally requested, and its customers have been paying these rates for the past eight months. Inflation is hurting the pocketbooks of all Americans, and I believe our due diligence in this case correctly limits the impact to ratepayers while ensuring that OG&E retains the financial ability to provide safe and reliable service.”
OG&E initially requested an increase of $332.54 million. The Commission previously approved the company’s interim rate increase of $126.66 million in November. Commissioners Kim David and Brian Bingman voted in favor of the final order in the case. Commissioner Todd Hiett voted against the order and will issue a dissent in the matter.
“Today’s vote will close this case and affirm those interim rates,” said Commissioner Brian Bingman.
“For ratepayers, resolving this matter provides certainty and clarity about the rates they are being charged.”
Commissioner Hiett took issue with 29 customers whose payments were subsidized before a new law took effect.
“It’s outside the ratemaking realm of the Corporation Commission. We’re not meeting the spirit of the law,” remarked Hiett as he says the special group of customers whould be treated as a special class.
“Residential customers are picking up part of the bills for these 29 customers and one of them, a company, made $3 billion last year. I think it’s a slippery slope and I think if an order stands, it’ll be overturned in a challenge before the State Supreme Court.”
Residential customers experienced a 6.6 percent increase as of July 1, 2024. Across all rate categories, the increase for the utility amounted to 4.5 percent.
Considerable expert testimony was provided along with public comment and arguments from various stakeholders to ensure compliance with state law for all participants throughout the ratemaking process.
The OCC PUD spends many hours reviewing utility company financial records, both revenues and expenditures, to carefully calculate the amount ratepayers are required to reimburse for the cost-of-service customers receive. Commissioners also consider the practicality of certain expenditures as it relates to whether ratepayers should shoulder the responsibility of any reimbursement.
OG&E issued its own press release following the Thursday vote.
On March 27, the Oklahoma Corporation Commission (OCC) issued a final order in OG&E’s rate review for Oklahoma filed in December 2023. There is no change to residential and business customer rates following today’s order. Today, OG&E’s residential rates are 9% below the regional average, 14% below rates in Texas, and 25% below the national average (Source: EIA). OG&E remains fully committed to providing our customers reliable electricity at low rates.
As you may recall, after OG&E and stakeholders reached an uncontested agreement in June 2024, and as permitted by Oklahoma law, a rate increase went into effect July 1, 2024, until a final order was issued. By Commission rules, if the Commission does not act within six months of a rate review filing, electric companies may implement interim rates. The final order represents the final legal resolution for the overall rate review. Today’s actions do not change residential or business customer rates. The final action resolved an outstanding issue for less than 30 large industrial and commercial customers unrelated to residential or small business rates. The Commission fully approved all of OG&E’s grid strengthening investments in 2022 and 2023. These investments in reliability result in fewer and shorter outages. The final order also approves the $60 annual increase in the Silver Energy senior citizen discount for qualified customers enrolled in SmartHours.
Stakeholders reached an uncontested settlement in June 2024 with all parties either signing or agreeing to not contest the terms. After reviewing the settlement, the commissioners voted to determine the current rate change fair, just and reasonable.
Additionally, an administrative law judge (ALJ) for the Oklahoma Corporation Commission reviewed OG&E’s 2023 fuel purchases and costs included in the fuel adjustment clause, as part of a standard, annual prudency review. Following the hearing, the ALJ recommended the OCC adopt a final order that OG&E’s 2023 fuel purchases and costs included in the fuel adjustment clause were prudent.
