Lost track of the number of OG&E bill increases? Catch up on price jumps here
If it seems like your utility bill repeatedly jumped in price over the past couple of years, that's because it did.
Oklahoma Gas and Electric Co. has repeatedly gone to state regulators in recent years for permission to charge customers increased amounts for a variety of reasons. Each time, regulators have granted approval for the utility to collect at least a portion of the requested increase.
Taken cumulatively, the average residential customer have seen charges on their bill increase four times since 2020 (not including seasonal changes), and it's likely there will be another increase next year because of continued high prices for buying and burning natural gas to generate electricity.
OG&E estimated the cost for an average residential customer each time the utility sought an increase. When totaled, those four increases in the past two years are about $15.71 a month.
More:Regulators are examining OG&E plan to raise customer bills
The following is a breakdown of those increases.
October 2020 — Distribution grid improvements
Monthly cost increase: 57 cents per average residential customer
In late 2020, OG&E asked regulators for permission to spend $14 million of customer-provided money to deploy new equipment designed to help improve their grid.
The company pledged to spend $7 million on grid improvements each year, at a cost of about 57 cents on customer bills over two years.
August 2022 — Winter storm cost recovery
Monthly cost: $3.34 per average residential customer
Winter Storm Uri in February 2021 led to $760 million in under-collected fuel costs because of a massive short-term spike in the price of natural gas, which is used to generate much of OG&E's electricity production. That December, the Oklahoma Corporation Commission approved a controversial plan to reimburse the company by selling bonds. To pay off bondholders, customers will be paying over $3 a month for the next three decades.
A lawsuit delayed collection until August 2022.
September 2022 — Rate increase
Monthly cost: $2.07 per average residential customer
The Oklahoma Corporation Commission approved a base rate increase of 1.9%, or $2.07 for the average residential bill. Unlike fuel costs that are passed directly onto its customers, OG&E enacted the rate increase to recover increased business costs and electric infrastructure investments the company has made since 2012, utility officials have said.
It was the first increase to OG&E's base rate since 2017.
October 2022 — Natural gas price recovery
Monthly cost: $9.73 (subject to change) per average residential customer
After paying exorbitant prices for natural gas over the summer, OG&E added $9.73 to the average residential customer bill (about 7.4%) to cover those costs. The company plans to collect the increased charge over the next 24 months.
This bill increase is currently under review by the Oklahoma Corporation Commission. It's possible that the charge could be extended to three years instead of just two, which would lower customer bills.
January 2023 — Natural gas price recovery
OG&E plans to revisit the fuel cost factor in January as part of an annual review, and to recover under-collected fuel costs from the second half of 2022. Depending on the forecasted price of natural gas, customer are likely to see their bills increase again, but company officials have indicated they would spread those costs out, similar to the other recovery efforts.
This article originally appeared on Oklahoman: Timeline of when, and why, your OG&E bill has increased
