Filing date: July 11, 2008

PSO filed with the Oklahoma Corporation Commission a rate application seeking an approximate $132.6 million increase in non-fuel base rates (see news release). Base rates cover PSO's costs, except for fuel, including the costs of investments, operating and maintenance costs of equipment and facilities, customer service and reliability related expenses, taxes, and administrative costs.

PSO's request represents an 8.9% increase in total rates.

PSO's proposal raises rates for all customers. The impact on a customer's bill would vary with individual usage. Residential customers would see an increase of approximately 11%. Commercial customers would see an increase of about 10%, and industrial customers around 5%.

PSO's filing is based on costs that occurred during a test year ending February 29, 2008.

PSO proposes to double expenditures for converting existing inaccessible backyard overhead power lines to underground service. At present, PSO spends approximately $20 million per year to convert 30 to 35 miles annually. At the current rate of progress, it will take 20 to 25 years for PSO to complete conversion of the approximate 800 miles that are targeted. By doubling expenditures to $40 million annually, PSO would accelerate the rate of conversion and complete the program within 10 to 12 years.

PSO proposes to maintain the 10% rate discount for public schools grades K-12.

Even with the proposed increase in effect, PSO's rates would remain at or below national averages.

PSO is filing this request for two primary reasons:
1. To recover hundreds of millions of dollars of investment in new electric facilities to serve customers that it has made in recent years;
2. To cover across-the-board increases in the cost of operations and maintenance to serve customers.

Learn more about PSO's investment and operations costs.