Rate Case Roundup: Oklahoma

Addressing a joint stipulation submitted as part of a natural gas LDC's performance-based rate (PBR) change plan, the Oklahoma Corporation Commission agreed with the settlement parties that the LDC, Oklahoma Natural Gas Company (ONG), had shown that the ROE actually achieved during the PBR review period was within 50 basis points of its last approved ROE of 9.50%. As a result, the commission said, there was no need to adjust the company's ROE either up or down.

However, the commission related that other adjustments were required with respect to certain of the LDC's programs. The commission explained that ONG had been able to document that while it had overcollected $834,351 in energy-efficiency (EE) program costs for 2016, its true-up calculations indicated that it had a substantial carryover in such costs from prior years.

The commission concurred that the company should be allowed to recover that prior-period EE undercollection on a prospective basis. The commission stated that the undercollection came to more than $3.13 million. The commission likewise was in agreement that, in comportment with the LDC's approved PBR plan, the company should be permitted to also collect more than $1.855 million in EE incentives it had earned in 2016.

The commission noted that the PBR and EE adjustments result in a slightly higher service charge for customers going forward. For smaller-volume residential customers, the service charge will rise by 28 cents, to $16.98 per month. For larger residential ratepayers, the charge also will go up by 28 cents, but their new charge will be $34.12 a month. By contrast, commercial customers will see a slight reduction in their monthly service charges. The commission said that a uniform decrease of nine cents will be applied to each of the two commercial customer classes, producing new charges of $20.81 and $36.01 per month, respectively.

The commission deemed the new service charge structure just and reasonable and supported by the record. Re Oklahoma Natural Gas Co., Cause No. PUD 201700079, Order No. 666781, Aug. 9, 2017 (Okla.C.C.).