News from the Oklahoma Corporation Commission

Office of Public Information -- Phone: (405) 521-4180 FAX (405) 521-6945

FOR IMMEDIATE RELEASE Contact: Patrick K. Petree Reference: PUD102097-84

Corporation Commission Orders PSO Rate Reduction, Refund

OKLAHOMA CITY -- By a unanimous 3-0 vote, the Oklahoma Corporation Commission Monday (Oct. 20) ordered Public Service Company of Oklahoma (PSO) to reduce its rates by $35.9 million annually for three years and make a one-time refund of $29 million to its 473,000 electric utility customers in Oklahoma.

Those requirements are contained in an agreement negotiated by PSO and the commission staff and recommended to the commissioners to close a commission review of PSO's rates that began in July 1996. The agreement also prohibits PSO from seeking a rate increase for three years under present regulatory rules. The three-year moratorium period is retroactive to June 1997.

"This is a fair and reasonable solution, allowing ratepayers to realize significant savings while allowing PSO to prepare for the future," Commissioners Ed Apple, Bob Anthony and Denise Bode said in a joint statement.

The refunds will be made as credits on December bills. About 43 percent of the refund amount will go to residential customers. Commercial customers will receive 33 percent and industrial customers will receive 24 percent.

The commission staff estimates refund amounts at about $30 for a residential customer with average usage of 13,000 kilowatt-hours annually and $145 for a commercial customer with average annual usage of 75,000 kilowatt-hours.

Customers who have left the PSO system since July 1997 will have until March 1998 to apply for refunds. They will receive refund checks for as little as $3.50. Any refund revenue, including refund amounts of less than $3.50, not claimed by July 1, 1998, will be flowed through PSO's fuel adjustment clause for the benefit of all customers.

A written order formalizing the commissioners' directive is expected later this week.

-occ-