PSO is trying to raise its rates based on estimations, which one consultant thinks goes against Oklahoma statutes.
By Ron Jenkins
OKLAHOMA CITY (AP) — A consultant on Thursday criticized the way Public Service Company of Oklahoma raised the bills of its customers to cover increases in fuel costs.
Mark Garrett testified before the Oklahoma Corporation Commission on behalf of Oklahoma Industrial Energy Consumers.
The three-member regulatory commission is taking testimony on the record fuel adjustment charges made on electric utility bills this month by PSO. The Tulsa-based company says the adjustment is needed to cover an increase in natural gas prices.
Under the change, the bills of residential customers went up $17.50, which is a record, said Corporation Commission spokesman Matt Skinner.
Oklahoma Gas & Electric Co. also has notified regulators that it will add an average of $15 to the bills of residential customers in July because of rising fuel expenses. No date has been set by the commission on the OG&E action.
The increase for residential customers of PSO was more than 20 percent. It was about 35 percent for industrial customers and more than 25 percent for commercial customers.
Garrett said the company should not be allowed to base its increase on estimates after a recent spike in natural gas prices.
“I think the statutes are very clear that estimates are not to be used,” Garrett said.
Instead, he said, said adjustments for fuel cost increases should be based on the average cost of fuel over 12 months, a method adopted by regulatory agencies in Nevada.
He said PSO would still recover its fuel expenses under his proposal, but customers would not be hit with as big an increase in a single month.
Alan W. Becker, director of regulatory services for PSO, defended the utility’s method of adjusting its charges because of higher fuel prices.
Becker said the company “struggles every day” with the issue of how increases in electric utility bills affect low-income customers.
“We have not found a good solution to that problem,” he said. He said the situation is analogous to how rising gasoline prices at the pump are affecting Oklahoma motorists.
PSO, part of the American Electric Power system, has more than 500,000 customers, mainly in northeastern Oklahoma.
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