OG&E Implements Interim Rate Increase, Lowers Fuel Costs

Renew Grid, Tuesday May 22, 2012 - 12:08:18

Oklahoma Gas and Electric Co. (OG&E) says it will implement an interim $24 million annual rate increase beginning June 1, but the utility also plans to seek approval to simultaneously lower fuel costs by $50 million annually, resulting in a net bill reduction for residential, commercial and industrial customers.

The move comes almost one year after the company made its initial filing for a $73 million increase with the Oklahoma Corporation Commission.

"We believe that this is an equitable, short-term solution," says Brian Alford, spokesperson for OGE. "We are able to cover our costs by implementing new rates, which are subject to refund should the commission's order ultimately provide for a lower increase."

Alford adds that lower-than-forecasted natural-gas prices will allow the company to lower the current fuel charge factor for customer bills.

By statute, if the OCC takes more than 180 days to complete its review and issue an order in rate-case proceedings, a utility may implement interim rates, subject to refund. OG&E made its initial filing with the commission on July 28, 2011.

OG&E, a subsidiary of Oklahoma City-based OGE Energy Corp., serves more than 792,000 electric customers in Oklahoma and western Arkansas.

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