News from the Oklahoma Corporation Commission

Jim Palmer, Director of Information

Phone: (405) 522-2100, FAX: (405) 522-1623,  www.occ.state.ok.us

March 2,2001

 

COMMISSIONERS ACT TO CUT “O-N-G” FUEL COST PASS-THROUGH TO CUSTOMERS

 

(OKLAHOMA CITY) – The Oklahoma Corporation Commission has voted unanimously to slash by 7.7% the amount of Oklahoma Natural Gas Company’s (ONG’s) pass-through costs of natural gas to its customers.

 

The Commission’s reduction in fuel costs for ONG customers will total $35,000,000 on March bills. The average residential customer will see a drop of about $6. Commissioners reviewed with expert testimony the natural gas fuel costs for the company and chose to cut the charge per *Mcf or *dekatherm from the February figure of $7.14 to $6.58 for March. The $6.58 includes an 0.87 deferred monthly fuel cost which represents 1/12th of the total deferred cost for March.

 

Chairman Bob Anthony said “Today’s vote will help soften the impact on Oklahoma consumers of this winter’s extraordinarily high natural gas heating bills.

 

Commissioner Denise Bode said “I want the Commission to continue to personally review these gas costs to ensure the company is maximizing low cost gas purchases. I am pleased that gas bills will again be reduced in keeping with market prices coming down.”

 

“We have acted in a responsible manner as a Commission in working with ONG to mitigate the cost of fuel passed-through to the customer,” said Commissioner Ed Apple. He expressed a preference for allowing ONG to recover its deferred costs before the next winter heating season instead of adding the deferred cost to next year’s heating bills.

 

This is the second monthly hearing on ONG’s fuel charge pass-through and the Commission will conduct another review next month.

 

 

In another action, the Commission also reduced OG&E’s requested increase in fuel costs. The impact will be a reduction of 3 mills per kilowatt hour (kwh) on customer bills. That equals about $3.00 per one-thousand kilowatts.

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