ONG Requests Rate Hike For Customers Due To Costs Of February Winter Storms

Oklahoma Natural Gas customers may continue to feel the impact of February's winter storms as a monthly bill increase could soon be on the horizon.

ONG sent out a letter to customers on Thursday detailing a request filed with the Oklahoma Corporation Commission requesting the approval of the financing of the costs which arose during February's storms. 

February's storms impacted ONG's pricing and demand for natural gas leading ONG to purchase natural gas at what it called "extraordinarily high prices" as well as "take other unusual steps to keep the gas flowing to homes and businesses" that are served by ONG.

At the request of ONG, the Oklahoma Corporation Commission has deferred the high costs temporarily to allow time for a recovery mechanism to be approved and implemented. The Oklahoma Legislature enacted the February 2021 Regulated Utility Consumer Protection Act as a means to mitigate the effects of the recovery of the costs. According to ONG, the act allows utility providers to "finance approved winter weather costs with state-issued bonds that can be repaid over a longer period at lower cost." If the application is granted, it should allow the utility provider to finance the cost with bonds, allowing it to repay the bonds while providing customers with natural gas at a reasonable price.

ONG said that its requested relief would result in an average monthly increase of $7.73 for residential customers or $5.71 for low-income for the first year. The utility provider said that the increase in costs would lower in subsequent years.

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Oklahoma Corporation Commission is currently scheduled to begin hearings before an Administrative Law Judge on Oklahoma Natural’s request on November 22 at 8:30 a.m.

The meeting will take place in Oklahoma City at the Jim Thorpe Office Building in Courtroom 301. The meeting is open to the public, including ONG customers. Public comments can be made via Zoom on the day of the meeting or by phone by dialing 669-254-5252. Comments can also be made by mail to the Oklahoma Corporation Commission at P.O. Box 52000, Oklahoma City, Oklahoma 73152, or by email with the subject line “Attention: Public Comment PUD 202100079” to PUDenergy@occ.ok.gov.