Saying it needs a rate hike because of $31 million in capital improvement projects, Summit Utilities goes before the Oklahoma Corporation Commission on Monday. It’s seeking a base rate increase of $4,937,453.
The Little Rock, Arkansas-based company has several thousand customers in Oklahoma and the corporation commission governs its rate applications.
“The primary drivers of the current rate change request are capital improvement projects, “stated the company in its request made June 27.
“In 2024, the company invested approximately $30.9 million in its mains and services to enhance the safety and reliability of its system.
If approved, the average residential customer would see an increase of $2.50 or 3.5% on their monthly bill. Customers in the Commercial Firm Sales Service class would see an average monthly increase of $15.85 or 1%.
Summit’s application also said the increase was necessary for the firm to achieve a 7.77% rate of return on investment. It said the 7.77% equates to a 10.75% return on equity and called it “reasonable.”
Summit originally filed a notice of intent to file in late April and proposed the new rates go into effect upon the issuance of an order by the corporation commission “but not later than one hundred eight (180) days from the date this application is filed.”
It also pointed out the commission last reviewed the company’s rates and charges under the Performance Based Rate Change tariff for the test year ending December 31, 2023.
Summit Utilities is the natural gas provider to 625,000 families and businesses throughout Arkansas, Oklahoma, and the Texarkana, Texas area. Summit acquired CenterPoint Energy’s operations in the three states in 2022.