OG&E gets $13.3 million rate increase

A rate increase of $13.3 million for OG&E customers in western Arkansas was formally approved Wednesday (May 20) by the Arkansas Public Service Commission.

The Oklahoma City-based utility company originally sought a $26.4 million rate increase in its Aug. 29, 2008 filing with the PSC. After reviews by PSC staff and the staff of the Arkansas Attorney General’s office, all parties agreed to what will be the first general rate increase in 25 years.

However, because a fuel charge refund will also be reflected on customers’ electric bills beginning in June, most customers are expected to see little change on their bills in 2009, OG&E noted in a statement. 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 residential customer‘s monthly service charge is expected to increased from $6.50 to $7.15, less than the the originally requested increase to $11.70.

“We recognize there is not a good time for a rate increase; and we have avoided any increase in residential base rates in Arkansas since 1984,” Howard Motley, vice president of regulatory affairs for OG&E, noted in the statement.

In a 2006, OG&E was granted a $5 million rate increase from Arkansas business customers to recover investments in a power plant acquired in 2004 and a new wind farm in northwestern Oklahoma.

The Arkansas Attorney General’s office said the new agreement was in the public’s interest because it reduces the overall rate increase to OG&E’s customers to $13.6 million, $12.8 million less than originally requested. The new agreement also reduces rates for the residential class of customers to $2.7 million, $4.8 million less than originally requested.

OG&E has about 772,000 customers, including about 65,000 customers in western Arkansas.