OG&E closer to rate increase; will lower fuel charges in 2009
by March 19, 2009 6:08 am 73 views
OG&E has received approval for a $13.6 million rate increase for its 65,000 customers in western Arkansas.
But the company noted in a press release that the increase “could be more than offset during 2009 by reduced customer fuel charges.”
Beginning in 2010, after the fuel charge refund has been completed, the average residential customer’s bill may increase $2 to $3 per month, according to OG&E.
The increase agreement was approved by the Arkansas Public Service Commission staff and the Arkansas Attorney General’s office. If the Commission approves the settlement agreement, it will be the first general rate increase in 25 years for OG&E’s Arkansas residential customers. OG&E’s overall Arkansas rates, now about 36% below the national average and 23% below the regional average, would still be among the lowest in the United States even after the proposed increase, the company noted in its statement.
The price of natural gas, which peaked last summer, has since declined significantly. As a result, OG&E’s fuel charge collected about $12 million more than the actual cost of fuel. That cost will be returned to Arkansas customers in the form of lower rates in 2009.
The settlement agreement also allows implementation of OG&E’s "time-of use" tariff. This allows participating customers to save on their electric bills by shifting some of their electricity consumption to times when demand for electricity is lowest.