I am writing about the big winter storm and the reported outrageous prices charged for natural gas and electricity.
I know very little about electric rates and sources, but I do know a lot about natural gas rates and sources. I am a retired auditor and accountant for several large oil and gas companies.
I see our state Legislature has approved a plan for these companies to charge higher monthly rates for a decade or longer.
They are just pulling a fast one to enrich these big corporations and rip off consumers.
For example, the Tulsa World reported on May 5 that ONEOK Corp. charged Oklahoma Natural Gas, up to $944.78 per mcf when the actual market price was under $3 an mcf. (“$4.5B bill to come due”)
But ONEOK has millions of mcfs of natural gas drilled, hooked up and ready to roll.
The idea that ONEOK, the parent company, would charge its subsidiary that figure is preposterous. It may have been a simple accounting entry, but that could easily be reversed or adjusted at a later date.
About 20 years ago, I was talking to the manager of a large gas field in eastern Oklahoma and western Arkansas. This manager told me the field being drilled could supply all of Oklahoma's and Arkansas' needs for the next 100 years.
Where was that gas when the supplies were lacking?
In many cases, this was the perfect storm for these utility companies to pull a huge pricing changes on their customers for years to come.
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