Expect higher gas bills after ONG gets approval for $15.25 million rate hike
Oklahoma Natural Gas' 875,000 customers will see their monthly bills climb after regulators granted a $15.25 million annual increase in rates collected by the utility to provide services.
The increase will lead to a net increase of about 34 cents on a monthly bill for average residential customers.
The rate increase itself will add about $1.27 per customer, but the net change in billing isn't quite as high due to a small refund provided to consumers in February 2022 paid for as a result of the 2017 Tax Cuts and Jobs Act, according to Corporation Commission spokesman Matt Skinner. If the rate increase hadn't occurred, customer bills would likely have decreased slightly in the coming year because of the Tax Cuts and Jobs Act windfall.
The amount of the increase, approved unanimously Tuesday by elected members of Oklahoma's Corporation Commission, will depend on the service plan of individual customers.
Residential customers who use more than 50 dekatherms of gas per year will see a net monthly increase of 34 cents.
Customers who use less gas will see slightly smaller increases.
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Utility customers that agree to pay fixed pricing for natural gas they consume and the utility's larger commercial customers also will see increases in their bills.
As for low income utility customers that receive assistance through the state and federal governments' Low Income Heating Assistance Program, utility officials say they also should expect to see an increase of about 8 cents per month on their bill.
Utilities are authorized by state law to file regular rate cases both to ensure the company makes a reasonable profit on the services it provides and to ensure that its customers are treated fairly. Its last rate case was in 2015.
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The utility requested this increase so that it could get a 9.4% return on equity (profit) through its operations and to pay the estimated cost of 4.1% on its long-term debt.
Revenues provided through the increase also will help the utility continue programs to replace old pipe, upgrade existing lines and improve system safety, and to install new pipe within its network to meet requests for service from new customers, utility officials said.
Between now and 2027, the utility will undergo annual performance reviews, where adjustments in rates could be made to ensure the utility isn't over- or under-collecting the revenues it needs.
Costs for the fuel that's consumed, however, are handled separately because state law allows regulated utilities to pass those costs directly to customers.
Changes in rates
The agreement approved by commissioners on Tuesday was supported by the utility, the commission's Public Utility Division, Oklahoma's Attorney General, the Oklahoma Industrial Energy Consumers (“OIEC”) organization and AARP Oklahoma.
ONG customers can obtain additional information about how their bills are computed at oklahomanaturalgas.com/rate-information/tariffs.
After the meeting, commission Chairman Dana Murphy said the order commissioners approved "was the culmination of robust negotiation, compromise and advocacy from those representing ratepayers, consumer groups, the commission's public utility division and the utility.
"While an increase of any sizeeven the estimated 34 cents per month for an average residential customer, is difficult in times like these, the order today reduces original estimates proposed by ONG and is a fair result," Murphy said.
Business Writer Jack Money covers Oklahoma’s energy and agricultural beats for the newspaper and Oklahoman.com. Contact him at jmoney@oklahoman.com. Please support his work and that of other Oklahoman journalists by subscribing to The Oklahoman.
This article originally appeared on Oklahoman: Regulator approves ONG-requested $15.25 million rate increase
