News from the Oklahoma Corporation Commission

Jim Palmer, Director of Information

June 16, 1999

CHAIRMAN APPLE WITHDRAWS SUPPORT OF STIPULATED AGREEMENT WITH ONG

(OKLAHOMA CITY)…Saying "several changes have taken place since my oral commitment," Oklahoma Corporation Commission Chairman Ed Apple opened Wednesday morning’s signing agenda with the announcement that he would vote no on the written order for the stipulated agreement between the commission and Oklahoma Natural Gas Co. (ONG).

Apple made it clear he was particularly disturbed by the Attorney General’s appeal in this matter that could have clouded the issue for months.

A motion to approve the joint stipulation was denied with Commissioners Apple and Bob Anthony voting against the stipulation and Commissioner Denise Bode dissenting in favor of the agreement.

Bode expressed disappointment with Apple’s change of view but respect for the opinions of her colleagues. In her dissenting opinion, she called the last minute change "a real bottom-line loss to Oklahomans." Bode said "moving forward to restructure the gas industry is a matter of profound importance to our state."

The commission declared a motion by the Attorney General (AG) to stay the stipulation pending appeal to be moot and denied it. A motion by the AG to recuse was also denied. The commission further ordered that the ONG causes be remanded to the administrative law judges on June 23 to determine a procedural schedule.

The proposed stipulated agreement worked out between commission utility staff and ONEOK, Incorporated, the parent of ONG and Kansas Gas Service Co. (KGS), was approved on May 26 by a 2-1 vote of the Commission with Commissioner Anthony the lone dissenting vote.

Following today’s action, two rate reviews of ONG remain in effect. One was instigated by commission staff and the other by an ONG application. ONG’s appeal of the commission’s unbundling order from last summer also remains in effect.