Randy Krehbiel
Tulsa World Staff Writer
The Oklahoma Corporation Commission agreed Tuesday to a 2.5% cap on Public Service Company of Oklahoma residential rate increases but rejected broader revisions proposed by the Attorney General’s Office.
Tuesday’s decision to modify a Nov. 3 Corporation Commission order regarding PSO rates came at the end of a long and often confusing discussion that concluded with one commissioner who was opposed to the cap voting for it and one in favor of it not voting at all.
For PSO customers, Tuesday’s decision means residential electric bills will increase a maximum of $3.57 per month instead of $5.35.
The issue Tuesday, as it often is in rate cases, was residential versus other customer classes, including industrial and business. It was also about Attorney General Gentner Drummond’s stated intention of keeping a closer eye on the Corporation Commission and utility regulation.
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Drummond had taken the rare move of filing two motions seeking modifications to the Nov. 3 order.
“They can stand with me in support of lower utility bills for Oklahoma families, or they can … force our residents to pay more,” Drummond said in a press release before the meeting.
Afterward, he issued a follow-up statement saying: “I commend each commissioner for standing with Oklahoma families in support of lower utility bills. I am grateful the commissioners thoughtfully considered our argument to protect PSO residential customers. … I look forward to working with the Commission on future rate cases to protect the interests of all ratepayers.”
In truth, the two commissioners — Todd Hiett and Kim David — who ultimately voted for the order that included the cap did so with great reservation; the commissioner who wholeheartedly supported it, Bob Anthony, did not vote, apparently because of “deal-breakers” elsewhere in the order.
One of Drummond’s motions would have essentially replaced the Nov. 3 order with one negotiated by Drummond, PSO and consumer organizations, including AARP-Oklahoma.
The second restored only the 2.5% cap that was part of that settlement.
A third motion, filed by PSO, made what were described as “clean up” changes to the Nov. 3 order.
The Oklahoma Industrial Electric Consumers, the Department of Defense, the Oklahoma Petroleum Alliance and Walmart were among those opposed to both attorney general motions.
OIEC Executive Director Tom Schroedter said Drummond’s motions unfairly shifted costs to commercial customers and called the commission’s Nov. 3 order “just and reasonable.”
Particularly contentious points between Schroedter and Assistant Attorney General Chase Snodgrass were whether that rate structure constituted a “subsidy” by residential customers of commercial transmission and whether Drummond’s proposals worked to the greater financial benefit of PSO.
PSO endorsed both of Drummond’s motions.
Hiett, the commission chairman, said he believed rate caps are unfair but ultimately voted for the order. David said she did not not want the cap to become “standard” practice but also relented.
David noted that PSO has another rate case on the calendar for early next year and said the cap could be reexamined at that time.
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