OKLAHOMA CITY -- Oklahoma Attorney General Drew Edmondson is trying to shut the light out on a contentious rate hike proposed by a key Oklahoma electricity supplier.
But losing the case could hamper investment plans for significant electricity-supply growth in regional Oklahoma, the utility claims.
Edmondson filed his opposition yesterday with the Oklahoma Corporation Commission (OCC) to a requested $49.6 million annual increase in customer payments by Public Service Company of Oklahoma (PSO). PSO filed the increase request last November.
The plan represents an eight percent annual payment increase - $6.50 per month - for its 514,000 customers in eastern and southwestern Oklahoma, says PSO. It asked OCC for the increase to finance $2 billion in new assets over the next five years.
Edmondson not only opposed the increase but also countered by proposing to the OCC a PSO rate cut of $22.8 million. The OCC had already recommended a PSO rate cut of $17 million, the AP reported recently.
A PSO spokesman said the company has invested more than $1 billion in Oklahoma-based electricity since its last base-rate increase in 1994. The company expects its proposed new investments to double its current customer base across the state.
As part of its proposed new $2 million investment, PSO also asked that its electricity rates and earnings be reviewable at the end of each year. Presently, utilities' financial records are reviewed over several years whenever they seek rate rises.
In applying for the increase, PSO stressed the need to prepare for future electricity demands. The company's proposed investment "ensures that PSO's customers will have the reliable, reasonable cost electric supply they need and expect," its application to OCC stated.
Opposing utility rate hikes has grown in popularity recently among state attorneys-general. Illinois' Lisa Madigan recently recommended a federal investigation of one state utility that more than doubled its rates in large portions of her state.
And two months ago, Washington Attorney General Rob McKenna claimed partial credit for seeing two rate-hike requests by utilities get the deep-six from the state regulator.
The first cost Avista Utilities an extra $28.9 million while the second cost Puget Sound $19 million in additional revenue in 2007.
PHILADELPHIA (Legal Newsline) - A roundtable of federal and state judges from across the country will convene at the posh Ritz Carlton on Feb. 9 to address topics such as "Can MDL's keep up with state court trial settings;" "Priority of deposition examination;" "State and federal cooperation;" and "Forum non conveniens."
