Oklahoma Natural Gas Rate Change Approved

NewsOn6.com

OKLAHOMA CITY -- Oklahoma Natural Gas Company received approval Monday from the Oklahoma Corporation Commission to change its rates. 

The corporation commission approved a settlement to allow an increase in base revenue of $54.5 million and set Oklahoma Natural's authorized return on equity at 10.5 percent. Several expenses that currently appear on customer bills as separate line-item charges will be moved into base rates, effectively reducing the rate increase to a net amount of approximately $26 million. 

The settlement approved by the corporation commission was negotiated by Oklahoma Natural Gas, the corporation commission's Public Utility Division, the office of the Oklahoma Attorney General and the Oklahoma Industrial Energy Consumers organizations. 

The new rates will be reflected in customer bills beginning later in December. Customers will receive additional information about the rate changes at that time. 

The company estimates that a typical residential consumer may experience an increase of $3.95 per month from this rate case; however, declining natural gas costs potentially could offset the higher charges for delivery. Low-income customers (those who qualify for federal energy assistance) will experience no increase. 

In a news release, commission chairman Bob Anthony said the parties should be commended for reaching a settlement and avoiding a prolonged and costly trial. 

"It is noteworthy that all parties to the case asked the Commission to approve the settlement," said Anthony. "The Attorney General — who represents consumers before the Commission — asked for approval, as did Commission staff, Oklahoma Natural Gas, and others.  All the parties are to be commended for meeting the challenge to formulate an agreement that all agree meets the requirement that rates be 'fair, just and reasonable.'"

As a result of the new rates, residential customers who use 50 dekatherms or more of natural gas per year will pay a fixed charge of $26.75 per month for Oklahoma Natural's delivery service, plus the cost of the natural gas, taxes and miscellaneous fees. 

Customers using less than 50 dekatherms per year of natural gas will pay a fixed charge of $11.20 per month and $3.7323 per dekatherm for delivery, in addition to the cost of the gas, taxes and fees. 

Oklahoma Natural Gas Company is ONEOK's largest natural gas utility, serving more than 800,000 customers across three-quarters of the state.