Oklahoma Corporation Commission Breaks Down Rising Costs

This previous yr we’ve seen value hikes right here in Oklahoma and nationwide on all the pieces from gasoline to groceries, and naturally our utility payments. 

We broke down the place the rise in price is coming from and it is largely due to rising gasoline prices. 

We spoke with the Oklahoma Corporation Commission who broke down the fee will increase from each utility firms since January 2022 to current day. 

“We are very much impacted by a rise in energy cost and that’s what we have been seeing for the past year,” said Matt Skinner with the Oklahoma Corporation Commission. 

The average customer that uses OG&E and ONG has seen about a $23 monthly increase on their OG&E bill and about an $8 monthly increase on their ONG bill. But these increases are not just a “price hike” from the utility companies.  

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

Fuel costs account for 84% of the increase in ONG bills and 86% of OG&E bills. The average ONG customer saw a monthly total fuel cost increase of $6.33. The Average OG&E customer saw a monthly total fuel cost increase of $13.07. 

The average OG&E customer saw a rate increase of $1.15 monthly on their ONG bills, and $2.07 monthly on their OG&E bills. 

“So, fuel costs are where we’re really getting hit,” said Skinner. 

Both utility companies had a fuel cost increase following the 2021 Winter Storm Uri. The average ONG customer saw a $6.33 increase, and the average OG&E customer saw a $3.34 increase.  

“Under state law a utility company can recover what they had to pay for fuel and pass it onto the consumer, but it has to be at no profit,” said Skinner. 

While that is regulated by the state and audited by the OCC to ensure utility companies are not profiting from the costs, the price of natural gas is not regulated by the state. 

In a statement today ONG said- “Natural gas prices have fluctuated significantly in the past year, which has caused customers’ bills to also fluctuate. These prices are set by the market, Oklahoma Natural Gas does not set the price of gas.” 

In an announcement Tuesday OG&E stated, “No one – including OG&E – wants to see electric bills go up.” including that in the course of the 2021 Winter storm- “ the natural gas market experienced dramatic increased demand, which led to a large spike in price.” 

Full Statement from ONG: 

1. Natural gasoline costs have elevated prior to now yr, which has a direct impression on clients’ payments primarily based on the quantity of gasoline used. It is essential to notice that Oklahoma Natural Gas doesn’t set the worth of gasoline or mark up the price of gasoline. Natural gasoline is a passthrough price to our clients. Customers can scale back the impression by following the conservation recommendations on our web site. 
2. We have had two requests this yr. The first, performance-based fee (PBR), is an annual submitting that we’ve yearly and is decided by the quantity we make investments annually in our system to proceed delivering secure and dependable vitality. This yr, we additionally had a further request for an adjustment as a consequence of Winter Storm Uri, the Winter Event Cost Recovery. This quantity was added to clients’ payments in September. 
3. As a part of the regulatory course of, right now’s authorised performance-based fee (PBR) settlement settlement permits our firm to proceed to put money into infrastructure and working bills that make sure the secure and dependable supply of pure gasoline to our clients. Lastly, we all know these are troublesome instances for Oklahomans and perceive that even a slight enhance in month-to-month payments may have an effect on lots of our buyer’s skill to pay their payments. We encourage our clients who’re struggling to pay their utility payments to succeed in out to us or go to oklahomanaturalgas.com/CARES for information about help packages and cost alternatives. 

Full assertion from OG&E: 

We know that rising inflation has elevated the price of many home items, together with meals and gasoline, and is making a monetary pinch for a lot of of our clients. No one – together with OG&E – needs to see electrical payments go up. We are dedicated to delivering dependable and resilient electrical service on the lowest charges attainable. OG&E understands the monetary impression any enhance has on our clients and stays devoted to persevering with our lengthy monitor document of offering reasonably priced charges and program choices to assist clients handle each their month-to-month invoice and vitality utilization. We ask residential clients who face challenges paying their invoice to please contact us at 1-800-272-9741. OG&E gives a number of packages and providers that assist clients handle their vitality utilization and month-to-month payments:  

·         OG&E gives cost plans to certified clients that embrace prolonged cost phrases and no late charges;  

·         OG&E additionally connects clients to social service businesses which will assist with invoice help. For instance, low-income certified clients can obtain a $13-per-month credit score on their month-to-month invoice for twenty-four months via the LIHEAP program managed by the Oklahoma Department of Human Services (DHS);  

·         Customers with family incomes of $60,000 or much less can join no-out-of-pocket dwelling weatherization providers at oge.com/weatherization and several other dwelling vitality effectivity packages can be found to all clients, together with air conditioner tune-ups at oge.com/escore; or  

·         To have extra management of their payments throughout excessive temperatures and guarantee a extra constant and predictable invoice every month, clients can join Average Monthly Billing at oge.com/amb or Guaranteed Flat Bill at oge.com/gfb.  

2022 OG&E fee and gasoline changes  

In 2022, the common residential buyer has seen a rise of roughly $23.25 monthly.   

August 2022: Implementation of 2021 Winter Event Securitization  

·         During the February 2021 Winter climate occasion – Winter Storm Uri – the pure gasoline market skilled dramatic elevated demand, which led to a big spike in value. OG&E’s precedence was, and continues to be, offering vitality to the grid that powers clients’ houses and companies. During the February occasion, OG&E clients didn’t expertise uncontrolled or rolling blackouts like these in Texas as a consequence of OG&E’s pure energy vegetation offering vitality to the grid. There had been some clients who skilled restricted service interruptions of not more than two hours.  

·         Following the February 2021 Winter storm, the securitization proposal handed via the 2021 legislature (SB 1050) and was signed by the Governor on 04/23/2021.  

·         In December 2021, the Oklahoma Corporation Commission (OCC) issued a securitization order approving the gathering of $760 million in gasoline and bought energy prices related to the winter storm, which had been to be unfold out over 28 years.  

In January 2022, the Oklahoma Supreme Court started listening to arguments about securitization, finally discovering securitization met the usual of regulation and ruling in favor of the OCC’s order in May 2022.  

During this era, rates of interest rose considerably as a consequence of market forces. The value of securitization rose from the initially estimated $2.12/month to an estimated $3.34/month.  

Securitization was carried out on buyer payments in August 2022. This cost seems as Winter Event Securitization line merchandise on buyer payments.