News from the Oklahoma Corporation
Commission
Phone: (405)
522-2100, FAX: (405) 522-1623, www.occ.state.ok.us
May 24, 2001
MULTI-MILLION DOLLAR CREDIT AND RATE
REDUCTION FOR P-S-O CUSTOMERS STARTS IN JUNE
(OKLAHOMA CITY) – The
Oklahoma Corporation Commission has amended an agreement to give Public Service
Company of Oklahoma (PSO) customers about $9,000,000 in combined rate credits
and cost reductions over twelve months starting on their June bills.
Commission Chairman Bob
Anthony said “The order allows PSO customers to benefit from a combination of
savings at the time of year when electric bills traditionally are highest. It
also makes technical corrections to allow residential customers to receive more
of the overall savings.”
Commission Vice-Chair Denise
Bode agrees the timing couldn’t be better.
“PSO is heavily dependent on
natural gas for much of its electric generation,” said Bode. “The increases
we’ve seen in natural gas prices mean higher electric bills this summer. The
$9,000,000 in savings for PSO customers will come at a time when air
conditioning demand is at its peak, and when the cost-savings will therefore be
needed the most.”
The savings are the result
of a well-executed business plan, said Commissioner Ed Apple, who added, “PSO
and AEP officials should be proud of the success of their merger, and its
resulting benefits to Oklahoma ratepayers.”
The impact on the bill of an
average customer who uses 1,000 kilowatt hours per month will be about $3.35.
In May of 1999, the
Commission approved a five-step rate reduction and hold-harmless methodology
concerning the sale of generating facilities resulting from the merger of
American Electric Power (AEP) and PSO’s parent Central and South West
Corporation (CSW).
The overall merger agreement
required the sale of 300 megawatts of generation in the Southwest Power Pool.
Profits from the sale would flow through to customers while consumers would be
“held harmless” should the sale have resulted in a loss.
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Page 2, PSO customer savings
Oklahoma customers will
benefit from the sale with $4,253.255 being passed through PSO’s fuel
adjustment clause during the summer months as an offset to the cost of natural
gas and coal.
In addition, PSO customers
will receive a $4,871,000 rate reduction credit. The credit is a the second
part of a five-step reduction approved by the Commission two years ago which
totals nearly $28 million. PSO customers received a rate reduction credit last
year of nearly $3.2 million as the first of the five steps.
-occ-
All OCC news releases and advisories are available for review and downloading on the OCC web site at www.occ.state.ok.us