Public Service Company of Oklahoma will begin a rate increase for customers in May, according to a news release. The company says it is to more accurately reflect what the company is paying for fuel used to generate electricity.
The release says the increase is mainly due to the rising natural gas prices due to the winter's high customer demand for natural gas and electricity.
PSO says the low temperatures caused an increase in demand for electricity, resulting in a spike in the price it pays for fuel. It says it's paying more for fuel purchases than the amount being passed on to customers.
"PSO understands that higher natural gas prices adversely impact customers in many ways, including their electric bill, which is why we're extending the recovery period to reduce the impact on customers," said Bobby Mouser, PSO director of Customer Services and Marketing.
According to the release, the increase in rates will being with the May bills; for a residential customer using 1,000 kilowatt-hours per month, the increase will be $5.68, about six percent.
The release says PSO is adjusting to recoup $27 million in under-recovered fuel expenses over a 12-month period. It says PSO incurs fuel costs on behalf of customers then recovers them; PSO says it does not earn a return or benefit.
The company says it will evaluate the need for an additional adjustment in November.