News from the Oklahoma Corporation Commission

Matt Skinner, Public Information

Phone: (405) 521-4180, FAX: (405) 521-6945  m.skinner@occemail.com

 

January 22, 2003

 

COMMISSION SAYS ‘YES’ TO HELPING SCHOOLS

Average credit of 35-40 percent on districts’ February gas bills

 

The Oklahoma Corporation Commission today approved a one-time gas cost credit for qualifying school districts served by Oklahoma Natural Gas, pending a written Order in the case.

 

Commission Chairman Denise Bode said the Commission is acting in the public interest.

 

“Oklahomans have made it clear that education of our children is a top priority,” said Bode. “This is an opportunity to respond to the very real need of many school districts.  Commission staff has done an excellent job in researching the legal background of such a request, and though it is unusual, there is no doubt the Commission has the authority to act in the matter and get this money to the schools as quickly as possible.”

 

Vice-Chair Bob Anthony noted the unique circumstances of the request.

 

“This is one-time money from a litigation refund that consists of money paid by Kansas Gas Service customers many years ago”, explained Anthony. “It does not involve utility overcharges. When one considers the difficulty in determining and locating what former KGS customers would be eligible for the one-time credit of about one dollar, and the crisis faced by our schools, there is no doubt that it is in the public interest to assist school districts served by ONG.  Further, it is clear from existing case law that such action is legally appropriate and proper.”

 

Commissioner Jeff Cloud agrees approval of the request is in the public interest.

 

“Both the present budget numbers and future projections are grim,” noted Cloud. “We have the opportunity, the authority, and the responsibility to make a difference for Oklahoma’s schoolchildren.”

 

It is estimated that qualifying school districts will receive a credit of 35 to 40 percent on their February bills.

 

The 1.5 million dollars comes from a settlement of certain property tax litigation covering a period in the 1980’s, and involving Kansas Gas Service Company (KGS). ONEOK, the parent company of Oklahoma Natural Gas, acquired KGS in 1997.

 

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(All OCC advisories and news releases are available at the Commission web site www.occ.state.ok.us)

EDITORS, PRODUCERS PLEASE NOTE: A list of the qualifying school districts is attached.