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Utilities go Forward With Winter Storm Rate Hike Requests

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Utilities go Forward With Winter Storm Rate Hike Requests

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The winter storm that hit Oklahoma resulting in power outages and rolling blackouts in February is about to possibly hit customers of Oklahoma’s major utilities a second time - with increased utility bills.

According to OK Energy Today, documents filed recently with Oklahoma regulators indicate consumer groups are critical of the rate hike requests and ready to do battle with the utilities.

The Corporation Commission has set an Oct. 11 hearing before an Administrative Law Judge to consider an $875 million rate hike request by Oklahoma Gas and Electric and is considering a similar hearing for Public Service Company’s $732.5 million request.

If approved, OGE’s request would increase the monthly charge of its average residential customer by $3.93. OGE made the request explaining the $875 million was for fuel, the purchase of power and “related” costs during the February winter storm.

The consumer group VOICE or Voices Organized in Civic Engagement is already critical of the OGE request, stating in an Aug. 17 filing with the commission it questions whether the “Feb Freeze actions by Utilities were prudent and reasonable” and will be a corporate “whitewash in protecting a monopoly’s supposed financial secrets.”

“How close the OCC is with the regulated utilities is worrisome,” wrote VOICE in its filing, adding, “The public has a right to know how involved were Oklahoma utilities with “financial-only” suppliers.”

VOICE questions whether utilities were truly prudent on contracting for natural gas supplies in early February when prices were low “or was there last-minute binge-buying at the highest rates?”

The consumer group is urging the regulators to carry out a day-by-day analysis and review to determine whether utility actions were not prudent and reasonable. It also urges the commission to compare the Southwest Power Pool hourly/ daily median fuel prices to show if Oklahoma utilities were over-paying during the freeze.

“For the OCC to not be known as the Corporation “Bail-Out” Commission, upcoming hearings on the Feb Freeze are crucial,” wrote VOICE. “OCC Commissioners may wish to quote their campaign literature and promises to voters during these hearings.”

The OGE hearing set for Oct. 11 is scheduled to begin at 8:30 a.m. and “continuing until the record is closed” at the Commission headquarters.