Oklahoma Attorney General Gentner Drummond announced a settlement agreement with Public Service Company of Oklahoma (PSO) that would significantly reduce the utility’s proposed residential rate increase if approved by the Oklahoma Corporation Commission.
According to the attorney general’s office, PSO originally requested a residential rate increase of about 15%, which would have raised the average customer’s monthly electric bill by more than $25. Under the proposed settlement, the average increase would be about $2.45 per month.
The settlement announcement comes after PSO said interim rates will take effect July 1 while the rate case remains pending before the Oklahoma Corporation Commission.
Those temporary rates are expected to increase bills by about $11 per month for a typical residential customer using 1,100 kilowatt-hours of electricity each month. If the commission ultimately approves lower permanent rates, customers would receive refunds for the difference.
“The initial impact was $25 but when we implement these interim rates, we really try to get it close to what we think the final impact is going to be,” PSO spokesperson Matt Rahn said. “So, it could be around this $11 or maybe even a little less and in that case, customers would be refunded the difference on that.”
PSO said the requested rate increase is intended to recover costs it has already incurred while serving customers from 2024 to 2025.
“I think it’s an important clarifying point to add that this rate case doesn’t have anything to do with future customers. It’s not about data centers. It’s not about the aluminum project in Inola,” Rahn said.
PSO sent a statement on the rate case settlement:
“This agreement shows how the regulatory process brings different groups together to review PSO’s request and work toward an outcome that balances customer affordability with the need to provide safe, reliable electric service. The proposed settlement reflects a lower overall amount than PSO originally requested and includes several adjustments and credits that reduce the impact on customer bills. As a result, if the settlement is approved, the final bill impact for customers would be lower than the interim rate impact that is still scheduled to begin July 1.”
This article was originally published by KOTV (News on 6). You can see the original story here.