ONG faces opposition over its $41 million rate hike request

  • June 10, 2025

 

 

Another rate hike for customers of Oklahoma Natural Gas Co. hangs in the balance as the utility takes its $41 million increase request before Oklahoma Corporation Commissioners and one of their Administrative Law Judges on Thursday.

ONG is asking regulators to approve an increase of $41,504,750 which would amount to another $3.24 a month for an average residential customer and $1.03 for a low income customer. However, with the application of the EDIT credit or Excess Deferred Income Tax, the final impact on a customer would be $2.12 for an average residential ratepayer and 70 cents more per month for a low income customer. The eventual increase for ONG’s 920,000 customers would be 2.99% for residential ratepayers and 1.77% for low income ratepayers.

ONG officials have testified the company invested $272 million since its last base rate increase which ended Dec. 31, 2023. The current proposal would cover expenses ending Dec. 31, 2024.

The hearing before the ALJ will begin at 10 a.m. on Thursday and some corporation commissioners might be in attendance.

The official agenda showed:

Pre-trial conference, public comment and a hearing on the merits before an ALJ in Case No. PUD2025-000011, Application of Oklahoma Natural Gas Company, a Division of One Gas,
Inc., for Approval of its Performance Based Rate Change Plan Calculations for the Twelve Months Ending December 31, 2024, Energy Efficiency True-Up and Utility Incentive Adjustments for Program Year 2024, and Changes or Modifications to its Tariffs

The case has already seen a battle between ONG and the Oklahoma Industrial Energy Consumers group. ONG attempted to force the OIEC to reveal the identify of the customers who challenged the rate request. Eventually, an administrative law judge determined the consumer group would have to only identify the classes of its challenging members and the number of members in each class of ratepayer.

The Thursday hearing will also offer opportunities for ratepayers to comment about the request by ONG. Already some have filed objections in the case including one couple who claimed they paid more in a gas service charge than they consume in gas usage.

“Oklahoma Natural gas should maybe be reviewed as to how they spend their money verses just keep making consumers pay for apparent misuse of funds. Maybe a DOGE team should be assembled to review their spending or address more as to what and where the money actually goes,” wrote the couple.
Wrote another customer, “’I am tired of the Corpooration Commission approving rate increases. We have even caught up from all the other increases. Where are the cuts and reductions?”
Another opponent wrote, “I strongly oppose the price increase that ONG is placing on its customers . We have already been forced to pay an increase due to the ice storms which I feel could have been avoided if funds had been managed better . It should not be the responsibility of ONG customers to be given the burden of another price increase.”

Jerry Bohnen