Oklahoma Gas and Electric rate case settlement

The Oklahoma Corporation Commission (OCC) has unanimously approved a proposed settlement in Cause # PUD 202100164, in which Oklahoma Gas and Electric (OG&E) had requested a rate increase.

Under the settlement supported and offered by the majority of the parties to the case:

• The original proposed increase of approximately $163.5 is reduced to $30 million.
• OG&E will issue a refund to ratepayers for tax expense savings from the reduction in the state corporate income tax rate.
• The impact to the average residential customer is estimated to be $2.07/month.
• The discount to customers in the Low Income Assistance Program (LIAP) will be increased by $3.00/month.
• Continue improvements to the OG&E electric grid, subject to a $6 million dollar annual cap.
• OG&E’s return on equity will remain at current levels (9.5%)

The parties supporting the settlement included:

• The Oklahoma Attorney General (who represents all ratepayers before the Commission)
• The Public Utility Division of the OCC
• The Sierra Club
• OG&E
• Oklahoma Industrial Energy Consumers
• Oklahoma Sustainability Network
• Oklahoma Association of Electric Cooperatives
• Federal Executive Agencies

Two parties to the case (AARP and WalMart) did not sign the agreement, but indicated they had no objection to it.

Also approved is a separate settlement offer reached by OG&E and the Petroleum Alliance of Oklahoma (PAO) which:

• Requires OG&E to provide additional information on its Fuel Supply Portfolio and Risk Management plan that is aimed at mitigating fuel price volatility and supply risks.
• Requires a public stakeholder conference on such plans.