News from the Oklahoma Corporation Commission

Jim Palmer, Director of Information

Acting on their unanimous vote, Oklahoma’s Corporation Commissioners signed an order approving a stipulation between ONG, Commission staff, Enogex, Transok, Octagon Resources Inc., Williams Pipeline Central Inc., Oklahoma Industrial Energy Consumers and GPM Corp. The Office of the Attorney General participated in the discussions but did not sign the final agreement.

Residential customers are guaranteed a one-time $5 million dollar credit by the stipulation in lieu of holding a costly interim rate hearing on speculative proposals. The credit, of approximately $7 per residential customer, will appear on September bills and cover the interim period of Sept. 1, 1999, to May 5, 2000.

ONG will request competitive bids for natural gas supplies for the 1999-2000 heating season and will seek competitive bids for transmission service effective Nov. 1, 2000. The stipulation sets up hearing schedules for unbundling ONG’s utility assets and for permanent rates.

ONG agrees to voluntarily follow the Commission’s unbundling rules. No assets will be removed from utility regulation until the Commission has made a specific finding that effective competition exists for those services.

The company will seek a stay of its appeal of last summer’s unbundling order pending before the Oklahoma Supreme Court and will dismiss the appeal once final orders are issued in the new case. In the meantime, the company agrees to implement certain consumer protections from the unbundling order as part of the stipulation.

Commission Chairman Bob Anthony praised the agreement.

"I wish to thank Oklahoma Natural Gas Co., Commission staff and all parties to this case for their dedication in being willing to return to the bargaining table. The agreement we are signing this morning contains a $5 million credit to be applied to residential customers September bills and significantly strengthens the ratepayer benefits and protections."

Anthony said "I would also like to specifically thank my colleague, Commissioner Denise Bode, for working with the parties to get the process off high center and negotiations moving."

Commissioner Bode pointed to the multi-million dollar rate reduction in Oklahoman’s utility bills which highlights the agreement but also emphasized the importance of customers gaining greater access at competitive prices to gas that is now being exported.

"The $5 million rate reduction is the icing on the cake we expect with a new open gas market in Oklahoma. Right now, we export 70% of our gas out of Oklahoma. This agreement will allow greater access to that Oklahoma gas by Oklahoma consumers, large and small, with competition at better prices. The concensus that finally developed among the regulators, ONG, and its competitors and customers to move forward is great news for all Oklahomans," Bode said.

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