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PSO's Grid Security, Transformation and Efficiency Plan (STEP)

On April 30, 2021, Public Service Company of Oklahoma (PSO) filed an application with the Oklahoma Corporation Commission (OCC) to update its prices from current prices based on 2018 expenses. PSO’s initiative is focused on enhancing service and reliability in communities across Oklahoma by: strengthening and securing the grid, meeting increasing energy demands with technology that delivers power more effectively, and revitalizing the grid to keep our reliability high with prices that are at or less than state, regional and national averages.

Our commitment to you!

There's a lot to know about PSO! We’re leading the way in delivering clean energy with some of the lowest prices in the country and programs to save you money and energy.

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PSO's Prices & Reliability

Did you know that PSO has among the lowest prices and highest reliability in the nation?

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Energy efficiency programs and sustainability efforts

Find out why PSO is innovating today for a resilient tomorrow.

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Benefits for You

It's all about keeping the power flowing to homes and businesses across Oklahoma and improving your service. The electric grid is the most complex and universally relied on machine ever built. Technological innovation, security and resiliency are core components of this backbone that powers 232 cities and towns in Oklahoma.

PSO's filing requests recovery of approximately $700 million in new investments made to serve customers. These investments, part of the company's grid Security, Transformation and Efficiency Plan (STEP) are already in service and providing benefits to customers but are not included in current prices. Costs to comply with federal environmental requirements make up approximately one third of the requested increase.

STEP is designed to:

  1. Strengthen and secure the electric grid, resulting in fewer and shorter power outages;
  2. Result in cleaner air and greater use of efficient and environmentally friendly power sources like low-cost natural gas and Oklahoma wind energy and,
  3. Give customers more control over how they use energy through new programs and service options by integrating new technology.

STEP Forward at a Glance

PSO's current prices are based on 2018 expenses, and costs have gone up significantly over the past two+ years. Fuel cost adjustments, reflecting the natural gas prices, have changed but rates have stayed the same.

We last filed for a base rate case in 2018. This review process is regulated or driven by the Oklahoma Corporation Commission and examines the costs for the system that delivers power to you - from the electric poles and wires to the substations and associated maintenance.

As part of the STEP forward process, we've evaluated customer needs, technological advancements in the utility space and more. As you might expect, we've identified a number of opportunities for us to continue to provide added value and improved service for our customers, while securing and strengthening the grid.

What's Next

PSO's application includes a request to increase the company's annual revenue requirement by $172.4 million to reflect new investments and increased costs. This will increase electricity prices for the typical residential customer by just over 1 cent per kWh or $11.87 per month. If approved, the new rates will remain competitive with state and regional averages. PSO's rates are 38% below the national average and 25% below the regional average.*

*U.S. Energy Information Administration, March 2021.

Frequently Asked Questions

In a 2019 agreement between PSO and several others, we committed to filing a case to update the base rates for providing electric service no earlier than October 2020 and no later than October 2021. This is the midpoint of that timeframe.

We are proposing that new rates will take effect in the November 2021 billing cycle.

You will have more reliable service and more control over how you use energy. We will continue to secure and transform the electric grid, meet federal environmental requirements, and efficiently and reliably service customers. The efficiency savings helps keep your energy costs down and the technology also helps us restore outages faster when they happen.

Before changing prices, PSO is legally required to demonstrate that all costs and investments are reasonable and necessary, and that pricing structures are fair to all customers.

Rate cases are standard practice for public utilities in the United States where utilities commissions review operations information and financial data. In Oklahoma, the OCC reviews this information and determines a reasonable base rate for PSO customers.

All aspects of PSO's pricing and service are subject to regulatory approval.

No. This is being addressed through a separate filing at the Oklahoma Corporation Commission.

Base rates reflect the cost of delivering electricity to our customers. These costs pay for the generation, transmission and distribution system - the power plants, substations, poles and wires you see in your community - along with all of the costs it takes to keep this system running. These costs also include reading meters, producing bills and customer service activities.

No. Fuel cost adjustments are simply the costs related to our fuel sources (example: natural gas and coal) that PSO pays to power its generating stations and serve customer load requirements. Because fuel costs vary from predicted costs, the factor must be adjusted - up or down - to ensure customers pay only the fuel costs that PSO actually incurs - no more or less. Fuel cost adjustments are also reviewed and approved by the Oklahoma Corporation Commission (OCC).

For a typical residential customer who uses 1,100 kWh/month, the increase would amount to approximately 11%, or $11.87/month.

If approved, the new rates will remain competitive with state and regional averages. PSO's rates are 38% below the national average and 25% below the regional average.*

*U.S. Energy Information Administration, March 2021.

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