Corporation Commission to revisit ONG’s billions in natural gas costs

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By Jerry Bohnen | OK Energy Today

 

OKLAHOMA CITY — State Corporation Commissioner Bob Anthony managed to convince his fellow regulators that maybe it would be wise to review the billions of dollars in fuel adjustment costs sought for approval by Oklahoma Natural Gas Co.

The commissioners voted 3-0 in a special meeting Feb. 22 to strike from consideration a case involving more than $2 billion in costs stemming from increased natural gas prices.

“How much money are we talking about?” Anthony asked during the meeting. “It merits our full attention, and additional time could be used to review what other states are doing.”

He urged Commissioners Todd Hiett and Kim David to take a step back because “there are legitimate concerns we need to look at.” While neither voiced comments about his request, they voted to support a remand of the prudence review.

What remains unclear is who will review the finances presented by ONG, and whether the agency will use an outside evaluator as suggested by Anthony.

Anthony repeated his suggestion of using an independent evaluator to closely review the costs cited by ONG, something the Corporation Commission did nearly 20 years earlier in a case involving the same utility.

OK Energy Today reported how Anthony filed his proposal and took note how the agency used such an evaluator and redetermined figures presented by ONG.

In the filing, Anthony said it’s obvious why an outside evaluator should be used — because fuel costs for ONG, OG&E, PSO and Summit in Winter Storm Uri totaled $4.5 billion.

Anthony later expressed hope that perhaps new Attorney General Gentner Drummond would ask to reopen the record and case at the level of an administrative law judge.

ONG serves approximately 905,000 residential, commercial and industrial customers. The utility provides natural gas to more than four dozen cities and towns in 10 southwest Oklahoma counties.

Those include Fort Sill, Elgin, Fletcher, Apache, Walters, Carnegie, Cement, Cyril, Fort Cobb, Marlow, Rush Springs, Duke, Eldorado, Davidson, Frederick, Grandfield, Manitou, Tipton, Comanche, Duncan, County Line, Loco, Velma, Gotebo, Hobart, Lone Wolf, Mountain Park, Snyder, Mountain View and Waurika.