Another OG&E rate hike? How much your bill could go up

OKLAHOMA CITY (KFOR) - OG&E customers who rely on the service could see yet another increase to their bills.

The utility company is asking the Oklahoma Corporation Commission to approve a $332 million rate hike request.

First reported by the Oklahoma Voice, the OG&E says the reason for the requested increase is to offset the cost of infrastructure improvements.

Those include power plant improvements and more resources for services such as tree trimming to reduce power outages.

If approved, the average customer will see an increase of just over $19 per month, according to OG&E.

The rate hike could go into effect as soon as July, but the news comes on the heels of back-to-back rate hikes, also following a more recent cost reduction.

In November 2023, the utility company instituted a cost reduction, accompanied by a savings of around $21 per month for residential customers.

Sean Voskuhl, AARP Oklahoma State Director, said the proposal for a rate increase coupled with performance-based rates would result in annual utility rate increases, potentially adding financial stress to customers in an already tight economy.

"We saw reduction in fuel costs...so it seems countercyclical now to ask for a big rate hike. And it's a big one [at] $19 increase per year as people are still struggling with high cost of food, utilities, prescription drugs. It's just uncalled for," Voskuhl said, calling the request for another rate increase coupled with performance-based rates a "one-two punch" for customers.

While the utility company was not immediately available for an on-camera interview Thursday, a previous statement provided to the station by OG&E acknowledged customers' concerns:

“Our customers tell us reliable electricity is their top concern, and we have made significant investments in equipment and new technology to provide increased reliability. The majority of this rate review includes new technologies like grid automation that can reroute power during outages, new substation construction to support our growing service area, storm response, and electric grid hardening to improve reliability for our customers and strengthen the grid against the extreme weather that impacts Oklahoma. Customers experience fewer and shorter outages where these improvements were made, and we plan to deploy these upgrades across the rest of our system.  

“Oklahoma’s economic growth remains on a strong trajectory, with business expansion and relocation driving new job creation and population growth for cities and towns all across the state. That success translates to more customers for us to serve. The completed projects in this rate review include more than 5,000 new projects to ensure reliable electric service for new homes and businesses.  

“Any change or increase in rates can be concerning for customers and we continue to work on affordability while ensuring improved reliability at the same time.”  

Christi Woodworth, OG&E Vice President, Marketing and Communications

The news comes as the Oklahoma Attorney General's Office released a statement on Wednesday about fuel cost reductions and a shift in interim utility rates for both OG&E and Public Service Company of Oklahoma (PSO) customers.

According to the AG's office, PSO residential customers will see an average $15.53 fuel-cost reduction on their January bill, in addition to a refund of $2.81 per month through April 2024, an outcome of an overall rate adjustment case from November.

Voskuhl said that adjustment came as a result of higher fuel costs and higher resulting payments.

"It's a refund back to customers and to mix it together with a rate increase and [assume] customers somehow won't feel it, is really disingenuous. This is money that they're already owed," he said.

Hearings for the potential increase will happen in May.