News from the Oklahoma Corporation Commission

OKLAHOMA CITY – The Oklahoma Corporation Commission has rescheduled the starting time for most gas utility retail customers to have the choice of buying gas from alternative suppliers.

An order issued Wednesday (March 31) changes from Oct. 1, 1999, to June 1, 2001, the start date for retail competition for gas utilities that serve more than 25,000 customers. The order also allows groups wanting to propose competitive purchase programs at earlier dates to submit their proposals for commission consideration.

Chairman Ed Apple said he concurs with testimony presented at a hearing that significant tax and municipal franchise issues should be addressed prior to restructuring the natural gas service industry. "I think these issues could take two years or more to resolve. We would be premature in setting this year (1999) as a target date for starting retail competition," Apple said.

Commissioner Bob Anthony said forced delays in implementing gas industry restructuring at the wholesale level caused the change in starting time for retail competition.

The commission revised its gas rules in 1998 to begin separating integrated gas systems into individual services at the wholesale level. Oklahoma Natural Gas Co. appealed several issues to the Oklahoma Supreme Court, staying the effectiveness of the order. The Supreme Court has not ruled on the appeal.

"Oklahoma Natural Gas has caused this delay. We are also disappointed that the Supreme Court did not dismiss the ONG appeal of an interim order which would have benefited consumers during last year’s heating season," Anthony said.

"I want consumers to have a choice about who provides their natural gas as soon as possible, but wholesale competition must come first. More importantly, consumers need to have time to prepare for the coming change. This revised schedule takes that into account," Commissioner Denise Bode said.

Anthony said most of the savings will occur from upstream restructuring and competitive bidding for gas procurement. "These savings have to be in place before they can be passed through to the retail customers," he said.

The commission order affects customers of Oklahoma Natural Gas Co. and Arkansas Louisiana Gas Co., the only gas utilities that serve more than 25,000 Oklahoma customers. ONG serves about 750,000 customers in 295 communities. Arkla serves about 115,000 customers, mostly in the southern half of the state, including Lawton and McAlester.

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