Public Service Company of Oklahoma (PSO) today filed an application with the Oklahoma Corporation Commission (OCC) to update its prices. The adjustment is needed to reflect the costs of investments to secure and transform the electric grid, meet federal environmental requirements, and efficiently and reliably serve customers.
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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. STEP is designed to 1) strengthen 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) provide new programs and offer customers new service options and integrate technology.
PSO’s application includes a request to increase the company’s annual revenue requirement by $172.4 million, or about 10.67 percent overall, to reflect new investments and increased costs. This will increase electricity prices for the typical residential customer by just over 1 cent per kWh. If approved, the new rates will remain competitive with state and regional averages and approximately 24 percent below the national average.
“At PSO, we’re committed to investing in a stronger, smarter and cleaner energy grid, and providing customers the highest quality, safe and reliable service they rely on to power their homes and businesses,” said Peggy Simmons, PSO president and chief operating officer. “At the same time, we’re working to be efficient and to provide excellent power reliability at prices that remain significantly below national averages.”
Costs to comply with federal environmental requirements make up approximately one third of the requested increase. The remainder of the costs are associated with transforming and securing the grid, integrating technology, and maintaining and improving system performance in extreme weather. Additional information can be found on the PSO website.
PSO, a unit of American Electric Power (Nasdaq: AEP), is an electric utility company serving more than 562,000 customer accounts in eastern and southwestern Oklahoma. Based in Tulsa, PSO owns approximately 3,800 megawatts of generating capacity fueled primarily by natural gas. It also maintains and operates 22,000 miles of distribution lines and 3,700 miles of transmission lines. PSO is one of the largest distributors of wind energy in the state. News releases and other information is at www.PSOklahoma.com. Connect with us on Facebook, Twitter NextDoor and Instagram @PSOklahoma.