AOG wins $18 million lawsuit against BP

by Talk Business & Politics staff ([email protected]) 917 views 

Arkansas Oklahoma Gas (AOG), a subsidiary of Summit Utilities, Inc., won $18 million in a civil lawsuit against BP Energy Company (BP) that the company says will reduce natural gas costs for its customers.

AOG filed a lawsuit against BP for breach of contract after it had failed to deliver natural gas supply in February 2021 during Winter Storm Uri, which resulted in increased gas costs for customers. The Federal District Court ruled that BP must pay AOG $18 million in damages, plus interest and certain litigation costs.

“This is a victory for all our AOG customers and will reduce the amount of Winter Storm Uri costs collected from customers,” said Hallie Gilman, executive vice president & chief legal officer for Summit Utilities. “I am proud of the hard work our team put forward taking on this challenge. We deeply care for our customers’ best interests and are pleased with this win.”

AOG customers pay for the gas costs associated with Winter Storm Uri as part of their monthly bills. The $18 million will reduce the costs to be collected from customers moving forward, the company said.

AOG filed its lawsuit against BP in 2021. The lawsuit claimed BP failed to provide the contracted amount of natural gas units to AOG customers during Winter Storm Uri, which forced AOG to buy gas from other sources at prices far in excess of the price it would have paid had BP delivered the gas as required.

Summit Utilities owns natural gas distribution subsidiaries that operate in Arkansas, Colorado, Maine, Missouri, Oklahoma, and Texas.