OKLAHOMA CITY – About 80 percent of Oklahoma Natural Gas’ 895,000 customers – including some in southwestern Oklahoma – will see their monthly gas bills jump by $7.82 as the utility seeks to recover its fuel costs from last February’s ice storm.
In southwestern Oklahoma, ONG provides service to most of Stephens County, the western half of Jefferson County, portions of Cotton, Tillman and Kiowa counties, portions of western Jackson County, most of Caddo County and all of Grady County.
The fee, which will be assessed monthly for the next 25 years, is designed to help ONG recover the $1.357 billion in fuel costs it paid to keep natural gas flowing during last winter’s ice storm.
The amount will be securitized, which allows the utility to spread the payments out for customers who used more than 50 dekatherms of natural gas, about 80 percent of ONG’s customer base.
Last winter’s ice storm hammered utilities across the country and shut off access to natural gas for millions of Americans. Because of the shortages, ONG and many other utilities went to the spot market to purchase natural gas. Fuel prices on the spot market were substantially higher than those of ONG’s regular suppliers.
Using the securitization method, the utility created bonds which, it said, spreads the cost out monthly. Customers who pay the $7.82 increase over the next 25 years will, eventually, pay a total $2,346.
The proposal was approved by a 2-1 vote of the state’s Corporation Commission. Commissioner Bob Anthony voted no. Anthony, in his dissent, wrote that the ratepayer-backed bond proposals were “ill-conceived, unconstitutional, and bad for residential ratepayers.
“Worse, they also appear to be an attempt to prevent thorough and open examination of questionable, possibly negligent utility management decisions and imprudent fuel/service purchases made during the storm, as well as an excuse to line the pockets of special interests on Wall Street and their local counterparts.”
For their part, ONG officials said they were pleased by the vote
“The company prioritizes keeping its customers safe and warm during these weather events and appreciates the Commission’s work to address the unprecedented costs from the high natural gas prices from the storm with fairness and in a manageable manner for Oklahoma Natural Gas customers,” the company said in a statement.