A recent request by Oklahoma Natural Gas Company to make changes to some of its energy assistance programs might result in another rate hike for its ratepayers, albeit a small one.
The company is asking approval of the Corporation Commission for changes in its “demand portfolio of conservation and energy efficiency programs” for the years 2026 through 2030. If approved, the changes could mean another $1.75 per month in utility bills for ratepayers.
The company says the changes are needed to account for inflation, according to independent economic consultant Paul H. Raab whose testimony was offered recently to the commission.
“—this change is needed because adjusting the customer incentives offered by the programs for the impact of recent inflation will cause residential bill impacts to exceed the current limit at existing participation levels,” he explained in the testimony. In other words, in order to help pay for the low income programs offered by ONG, it will have to make a slight increase in monthly rates of its other customers.
He also indicated that there is a possibility that the utility’s growth of eligible residential customers, a growth estimated to be 5% by 2030, could lower the average monthly residential impact to $1.67.
ONG also wants to change the name of its Low Income Energy Efficiency program to the Inccome Qualified Energy Efficiency Assistance Program.
“As an overview, the Company is not proposing significant changes to its existing portfolio of conservation and energy efficiency programs,” continued Raab.
“Rather, based on its experience with its current Demand Portfolio over the previous three years, the Company is proposing to modify budget levels associated with many of its programs.”
He said the budget level changes would increase budgeted expenditures for certain programs including the Natural Gas Clothes Dryer Replacement Program, the New Homes Program, and the Commercial Custom Program. Other programs would see a decrease in budgeted expenditures by ONG such as the Heating System Replacement Program.
The net effect, according to Raab, is a requested budget increase of 14.21% over what the Commission had previously approved.
He also explained ONG wants to increase the budget for low-income energy help by $1,150,000 to “accommodate more customers.” Since 2015, ONG ran the program with OG&E in Oklahoma City and PSO in Tulsa and contributed a portion of the cost needed to improve the efficiency of energy usage in low-income households. But ONG said its budget for the program was always expended prior to the end of the program year.
“Thus, there is a greater need for the services offered by these programs than Oklahoma Natural currently funds, and it is proposing to increase the budget for this program to meet some of that need,” added Raab.
