Oklahoma Corporation Commission Breaks Down Rising Costs

Over the previous 12 months, right here in Oklahoma and throughout the nation, we now have seen value will increase on every thing from fuel to groceries and naturally our electrical payments.

We’ve damaged down the place the associated fee enhance is coming from and it is primarily because of rising gas prices.

We spoke to the Oklahoma Corporation Commission, which has damaged down each utility corporations’ price will increase since January 2022 thus far.

“We’re very affected by increases in energy costs, and we’ve seen that over the past year,” stated Matt Skinner of the Oklahoma Corporation Commission.

The common buyer utilizing OG&E and ONG noticed a month-to-month enhance of about $23 on their OG&E invoice and a month-to-month enhance of about $8 on their ONG invoice. But these will increase aren’t only a “price hike” by utilities.

“It’s important to understand that there is a difference between the fares we pay and the fuel costs we pay,” Skinner stated.

Fuel prices account for 84% of the rise in ONG payments and 86% of OG&E payments. The common ONG buyer noticed a month-to-month enhance in whole gas prices of $6.33. The common OG&E buyer skilled a month-to-month enhance in whole gas prices of $13.07.

The common OG&E buyer noticed a value enhance of $1.15 month-to-month on their ONG payments and $2.07 month-to-month on their OG&E payments.

“So fuel costs are where we really get hit,” Skinner stated.

Both utilities noticed will increase in gas prices following winter storm Uri in 2021. The common ONG buyer noticed a $6.33 enhance and the common OG&E buyer noticed a $3.34 enhance.

“Under state law, a utility can reclaim the fuel it paid for and pass it on to the consumer, but it can’t make a profit,” Skinner stated.

While that is federally regulated and audited by the OCC to make sure utilities don’t profit from the prices, the worth of pure fuel shouldn’t be federally regulated.

In a press release as we speak, ONG stated: “Natural gas prices have fluctuated significantly over the past year, which has caused customer bills to fluctuate as well. These prices are set by the market, Oklahoma Natural Gas does not set the gas price.”

In a statement on Tuesday, OG&E said, “No one – together with OG&E – desires utility payments to go up,” adding that during the 2021 winter storm, “the pure fuel market noticed a dramatic enhance in demand that led to a big value spike.”

Full statement from ONG:

1. Natural gas prices have increased over the past year, which has a direct impact on customers’ bills based on the amount of gas consumed. It is important to note that Oklahoma Natural Gas does not set the price of gas or increase gas costs. Natural gas is a cost passed on to our customers. Customers can reduce the impact by following the preservation tips on our website.
2. We had two requests this year. The first, performance-based installment (PBR) is an annual filing we have each year, which is determined by the amount we invest in our system each year to continue delivering safe and reliable energy. This year we also had an additional request for an adjustment due to Winter Storm Uri, the cost reimbursement for the winter event. This amount was added to customers’ invoices in September.
3. As a part of the regulatory course of, the performance-based settlement settlement (PBR) permitted as we speak permits our firm to proceed investing in infrastructure and operational prices that make sure the secure and dependable supply of pure fuel to our prospects. Finally, we all know these are troublesome occasions for Oklahoma, and we perceive that even a small enhance in month-to-month payments may impression the flexibility of lots of our prospects to pay. We encourage our prospects who’re having issue paying their utility payments to contact us or go to oklahomanaturalgas.com/CARES for details about help packages and cost choices.

Full assertion from OG&E:

We know that rising inflation has elevated the price of many home items, together with groceries and gas, and is creating monetary hardship for a lot of of our prospects. Nobody — together with OG&E — desires electrical payments to go up. We attempt to supply a dependable and resilient electrical energy service on the lowest potential costs. OG&E understands the monetary impression every enhance has on our prospects and stays dedicated to persevering with our long-standing monitor document of offering inexpensive plans and program choices to assist prospects handle their month-to-month invoice and power consumption. We encourage particular person prospects who’re having bother paying their invoice to contact us at 1-800-272-9741. OG&E presents numerous packages and providers to assist prospects handle their power consumption and month-to-month payments:

· OG&E presents qualifying prospects cost plans that embrace prolonged cost phrases and no late charges;

· OG&E additionally connects prospects to social providers who may also help with billing. For instance, qualifying low-income prospects can obtain a $13 per thirty days credit score on their month-to-month invoice for twenty-four months by means of the LIHEAP program administered by the Oklahoma Department of Human Services (DHS);

· Customers with family incomes of $60,000 or much less can join free residence weathering providers at oge.com/weatherization, and a number of other residence power effectivity packages can be found to all prospects, together with air con tuning at oge. com/escore; or

· To have extra management over their payments throughout excessive temperatures and guarantee a extra constant and predictable invoice every month, prospects can opt-in at oge.com/amb for common month-to-month billing or at oge.com/gfb for assured flat-rate billing.

2022 OG&E fee and gas changes

In 2022, the common client noticed a rise of about $23.25 per thirty days.

August 2022: Implementation of the 2021 winter occasion securitization

· During the winter climate occasion in February 2021 – Winter Storm Uri – the pure fuel market skilled a dramatic enhance in demand, which led to a pointy enhance in costs. OG&E’s precedence has been, and continues to be, offering energy to the grid that powers prospects’ properties and companies. During the February occasion, OG&E prospects didn’t expertise uncontrolled or rolling energy outages like in Texas, as OG&E’s pure energy vegetation feed power into the grid. Limited service disruptions of not more than two hours have been skilled by some prospects.

After the February 2021 winter storm, the Securitization Proposal handed by means of Legislature 2021 (SB 1050) and was signed by the Governor on 04/23/2021.

In December 2021, the Oklahoma Corporation Commission (OCC) issued a securitization order authorizing the gathering of $760 million in gas and electrical energy prices associated to the winter storm, to be unfold over 28 years.

In January 2022, the Oklahoma Supreme Court started listening to arguments concerning securitization, finally discovering that the securitization met authorized requirements, and ruling in favor of the OCC’s order in May 2022.

During this era, rates of interest rose considerably because of market forces. The value of the securitization rose to an estimated $3.34/month from an preliminary estimate of $2.12/month.

The securitization was carried out on buyer invoices in August 2022. This charge will seem as a Winter Event Securitization line merchandise on buyer invoices.