News from the Oklahoma Corporation
Commission
Phone: (405)
521-4180, FAX: (405) 522-1623, www.occ.state.ok.us
September 26,
2001
COMMISSION MOVES ON RESOLUTION OF GAS COST
(Oklahoma
City) Corporation Commissioners today took officials of Oklahoma Natural Gas
and its parent company ONEOK to task over their response to questions raised
concerning last winter’s natural gas costs. Today’s deliberations were
scheduled by the Commissioners to move toward resolution of whether ONG acted
prudently in its handling of last winter’s natural gas costs.
ONEOK
Chairman David Kyle made a surprise proposal during the deliberations, suddenly
offering to comply with a Commission order that ONEOK surrender documents
related to gas purchases made last winter.
While
saying they are “grateful,” for the offer, Corporation Commissioners questioned
the timing and conditions of it.
ONEOK’s
offer is predicated on the understanding that the company still does not
recognize the Commission’s authority to request the documents. The company has
tried and failed twice in the Oklahoma Supreme Court to get a ruling to that
effect, and a third attempt is presently before the Court. ONEOK faces fines of
over 200 thousand dollars for its refusal to comply with the Commission order.
Commissioner
Chairman Denise Bode and Vice Chair Bob Anthony say the issue of authority must
be resolved once and for all.
“It
is critically important not only to this case, but future matters involving the
restructuring of the various utilities,” said Bode. “This Commission must be
allowed to carry out its constitutional authority, or there will be no way of
gathering information to be sure Oklahomans are protected.”
Commissioner
Anthony said he cannot accept the offer without recognition of Commission
authority in such matters.
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“We
have a burning legal question here that goes to the heart of whether the
Commission can fulfill its constitutional responsibility to oversee what the
Oklahoma Constitution defines as a ‘public service company.’ We need the
Supreme Court to rule on this.”
Commissioner Bode chided the company for
making the offer at such a late date.
“We’re
going into the winter with this case still unresolved, because you (ONEOK) have
been doing all you can to delay it, refusing to comply with our orders. It
appears to me you’ve been less than forthright in this entire matter. I had
numerous informal meetings prior to last winter with ONEOK and ONG officials
about the impact of expected higher natural gas costs, and was repeatedly
assured the company was taking action to mitigate the impact on consumers.
Those assurances were proven to be less than accurate. As a result, consumers
were hurt.”
Chairman
Bode warned ONEOK officials that it appears the company has shown “almost a callous
disregard” for consumers.
ONEOK
Chairman David Kyle expressed surprise at Bode’s comments, saying he was not
aware she had concerns about rising gas prices and the need for storage prior
to last winter. In response, Commissioner Anthony offered to assist Kyle in
going over the past record of the case.
“The
Commission’s challenge is to take the evidence of this case and weigh it in the
context of the law,” said Anthony. “I think the record makes clear
mismanagement and imprudence on the part of ONG when it comes to the natural
gas costs of last winter.”
Anthony
is recommending that ONG not be allowed to pass on to its customers millions in
gas costs from last winter.
Commissioner
Ed Apple was unable to attend today’s meeting because of the birth yesterday
evening of his granddaughter. He has filed a statement of position recommending
the entire matter against ONEOK and its affiliates be dismissed. It is
Commissioner Apple’s belief that no evidence exists to substantiate the
allegation that ONG was imprudent in its handling of gas costs last winter.
Commissioners
Bode and Anthony took the ONEOK offer regarding the requested documents under
advisement, and concurred that the entire case involving the question of last
winter’s gas costs should be settled no later than October 31st.
-OCC-
All OCC news releases and
advisories are available on the OCC web site - www.occ.state.ok.us