News from the Oklahoma Corporation Commission

Matt Skinner, Public Information Officer

Phone: (405) 521-4180, FAX: (405) 522-1623, www.occ.state.ok.us

February 02, 2001

COMMISSION MOVES TO LOWER GAS BILLS

BUT COMMISSIONERS WARN THE CRISIS ISN’T OVER

In a move to lessen the blow of skyrocketing natural gas prices, the Oklahoma Corporation Commission has voted to change the formula used to determine the purchase gas adjustment (PGA) used by Oklahoma Natural Gas to recover the price it must pay for gas.

ONG had this week announced its intention to increase the PGA to 8.27 per dekatherm from the present 7.88 per dekatherm. Instead, consumers will see a lower gas price than what is currently on their bills.

ONG customers will see the price they pay for gas decrease from 7.88 per dekatherm to 7.14 per dekatherm. A "dekatherm" is the approximate equivalent of using one thousand cubic feet of gas. The average ONG customer should see a decrease in their bill of ten to twelve percent, depending on gas usage and billing plan.

Commission Chairman Bob Anthony said the PGA will be reviewed again in one month to see if a change is warranted.

"This (the PGA) is an item of timing," said Anthony. "The costs ONG has had to bear to purchase gas are a reality for the company, and they are entitled to recover legitimate costs."

"We're trying to do the best we can to accommodate the public interest, and the companies and the consumers are all a part of the public interest."

Chairman Anthony warned Oklahomans to remember the energy price crisis will impact their electric bills as well.

"Electric utilities in Oklahoma use natural gas to generate much of their power," he said. "Some have already notified this Commission of their need to recover their fuel costs, just as gas utilities have had to do. This will cause electric bills in Oklahoma to increase."

Commission Vice Chair Denise Bode said the Commission’s action is aimed at providing hard-pressed Oklahomans some breathing room.

"The spikes in the price of natural gas have posed a burden for everyone in Oklahoma," said Bode. "It is vitally important we do what we can at the Commission to help Oklahomans weather the storm."

However, Bode was quick to add the problem was not caused by gas utilities, producers, or pipeline companies.

"This problem was the direct result of a decision on the national level to allow cheap, imported oil to flood the American market. Domestic producers, who we depend on for our natural gas, were forced out of business and all drilling in America came to a virtual halt for two years."

Commissioner Ed Apple agreed.

"We have many Oklahomans this will help in the next month or two, but we need to stress this does not change the fact of high natural gas prices," said Commissioner Apple. "Nor does it change the fact this is a national problem that requires national attention. I urge all Oklahomans to join in the effort to establish a national energy policy, and I encourage the recent efforts made by the Bush administration in that regard."

The Commission order regarding ONG’s purchased gas adjustment will be issued Tuesday, but the change will be reflected on customers’ bills immediately.

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All OCC news advisories and news releases are available for review and downloading at the OCC web site at www.occeweb.com