News from the Oklahoma Corporation
Commission
Phone: (405)
522-2100, FAX: (405) 522-1623, www.occ.state.ok.us
January 22,
2001
Commissioners
vote unanimously to scrutinize monthly gas utility purchases and passthroughs
of natural gas costs
(OKLAHOMA CITY) –
Corporation Commission Chairman Bob Anthony, Vice-Chair Denise Bode and
Commissioner Ed Apple have unanimously approved an order calling for a monthly
examination of utility costs for natural gas and the passthrough of those costs
to consumers. The action was initiated at the request of Vice-Chair Bode.
The order sets a public
hearing for February 1 to advance the issue of natural gas costs to the full
commission during which there will be testimony under oath and the public will
be asked to comment.
Commissioner Bode said “it
is important for the public to be involved” and she believes the hearing will
provide an opportunity for the public to be educated on gas purchases.
At issue is the Purchased
Gas Adjustment, or PGA. Under the PGA, the utility may pass on to the consumer
(at no profit) the price it had to pay for the gas. This “pass through” does
not require Commission approval. However, the Commission can review the
utilities’ costs to be sure the amount is correct. Normally, the Commission’s
Public Utilities Division staff does the review.
“With natural gas prices
drastically increased because of tight supply, it’s important the public be
confident the Commission is ensuring they aren’t paying any more for gas than
the law allows,” said Bode
Chairman Anthony asked for
public assistance in telling the Commission of any imprudent charges.
Commissioner Apple
emphasized that today’s action will not lower anyone’s gas bill and it is not
aimed at a long term solution but it will verify the accuracy of gas costs
being passed through to consumers. Apple said “what is needed is a move to
marshal all the resources of this great nation to embark on a firm plan to
ensure this nation’s energy independence.”
-continued-
Page 2, monthly gas review
continued
Toward that end, Apple said
he plans to send a letter to President Bush asking that a national energy
emergency be declared in order to put such a process in motion.
Commissioner Bode, a member
of the Bush administration’s energy advisory committee, agreed with Apple’s
assessment, and added she is confident the Administration understands the
gravity of the energy crisis faced by this country.
-occ-
All news
releases and advisories are available for review and downloading on the OCC web
site at www.occ.state.ok.us