OG&E customers face possible rate increase by July with Corporation Commission approval

Terré Gables/KFOR
·3 min read

OKLAHOMA CITY – One day after the announcement from Oklahoma Attorney General Drummond on Wednesday stating fuel cost reductions and a shift in interim utility rates will add up to savings in the new year for Public Service Company of Oklahoma (PSO) and Oklahoma Gas & Electric Company (OGE) utility customers, OG&E customers are now facing a possible rate increase in July.

The electric company is seeking approval from the Oklahoma Corporation Commission for a $332 million rate hike annually, as first reported by Oklahoma Voice.

AG Drummond on Wednesday said, PSO residential customers will see an average fuel-cost reduction of $15.53 per month on their January bill. Additionally, PSO residential customers will receive a refund of $2.81 per month from January through April 2024. The refund is part of an overall rate adjustment case negotiated by AG Drummond in November.

Energy, fuel rates decrease for PSO, OGE customers in 2024

According to documents filed with the Oklahoma Corporation Commission, if approved, the average residential customer will see an increase of $19.02 per month compared to current rate.

That would be a hike of about 13.8%

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The average impact to an R-1 customer as compared to current rates is a monthly increase of approximately 13.85% or $19.02 per month per customer. The price changes to the tariff includes an increase in the monthly customer charge, from $13.00 to $21.00, and a lowering of the energy prices paid by those customers, according to OG&E’s response filed with the Oklahoma Corporation Commission.

KFOR has reached out to OG&E for a response.

OG&E Statement:

“Our customers tell us reliable electricity is their top concern, and we have made significant investments in equipment and new technology to provide increased reliability. The majority of this rate review includes new technologies like grid automation that can reroute power during outages, new substation construction to support our growing service area, storm response, and electric grid hardening to improve reliability for our customers and strengthen the grid against the extreme weather that impacts Oklahoma. Customers experience fewer and shorter outages where these improvements were made, and we plan to deploy these upgrades across the rest of our system.

“Oklahoma’s economic growth remains on a strong trajectory, with business expansion and relocation driving new job creation and population growth for cities and towns all across the state. That success translates to more customers for us to serve. The completed projects in this rate review include more than 5,000 new projects to ensure reliable electric service for new homes and businesses.

“Any change or increase in rates can be concerning for customers and we continue to work on affordability while ensuring improved reliability at the same time.”

Customers can visit OGE.com/ratereview to learn more about the process.

Christi Woodworth, OG&E VP Marketing & Communications

OG&E’s rate review request 

  • On Dec. 29, OG&E filed a rate review at the Oklahoma Corporation Commission to support infrastructure investments made by OG&E over the last two years to harden the grid and improve reliability.

  • OG&E seeks a rate change that would increase the average residential customer’s monthly bill by approximately $19 per month. This change follows a fuel reduction change of $21 per month for the average residential customer that went into effect on Nov. 1, 2023.

  • The rate review also includes a $60 annual increase in OG&E’s Silver Energy senior citizen discount, following the 30% increase in the discount implemented in 2022 for customers with low income.

  • Over the past two years, OG&E’s investment in the electric grid projects are improving reliability and strengthening the grid against extreme weather that impacts our service area. According to FEMA statistics, Oklahoma ranks third in the nation for federally declared severe storms from 2000-2022.

  • The rate review includes major power plant improvement projects, ensuring OG&E can reliably produce power at all times of the year through Oklahoma’s unpredictable weather.

  • The rate review also includes additional resources for tree trimming and vegetation growth management to reduce outages and respond to customer requests.

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