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Commission Approves Settlement Negotiated by OIEC
By
2009-07-31
 
TULSA, OKLA. – Oklahoma Industrial Energy Consumers, an association of large industrial companies, today announced that the Oklahoma Corporation Commission has approved a settlement that it and other intervening parties negotiated with OG&E regarding OG&E’s proposed $110.3 million rate increase. OIEC and other parties were successful in negotiating a settlement that reduced the rate increase down to $48.3 million, with approximately $2 million of that increase allocated to OG&E’s industrial customers.

“We are pleased with the Corporation Commission’s decision to approve this settlement that we helped negotiate with OG&E,” said Tom Schroedter, executive director of OIEC. “This settlement, in our view, is in the public interest and results in fair, just and reasonable electricity rates for Oklahoma’s job-creating industries, especially during these tough economic times.”

OIEC, which consists primarily of a diverse group of Oklahoma processing and manufacturing industries, intervened in the case shortly after OG&E filed the rate case in February 2009. OG&E’s rate filing initially proposed that $25.3 million of the $110.3 million increase be allocated to industrial customer classes. On behalf of some the state’s largest companies and employers, OIEC argued that an excessive and inequitable allocation of electric power costs to Oklahoma’s job creating employers would result from OG&E’s filing which would be detrimental to industries and to the state. The recent downturn in the economy has forced many of these companies to scale back operations and reduce jobs. From April 2008 to April 2009, Oklahoma lost 13,600 manufacturing jobs, the largest loss of any sector, according to the Oklahoma Employment Security Commission.

“This settlement, and the Commission’s final approval, is a positive result for Oklahoma’s industries,” said Schroedter. “OG&E, the Corporation Commission Staff and other parties recognized the challenging economic environment currently facing these companies and the importance of assigning costs fairly and properly among OG&E’s various customer classes. We applaud their reasonable handling of this matter.”

OIEC works to ensure just and reasonable utility rates for OIEC members and advocates for the allocation of utility costs to customers based upon the utilities’ cost of providing service to those customers. OIEC has been active on behalf of industrial and other large consumers of energy for more than 10 years, successfully advocating for utility cost reductions or avoidance of utility cost increases for its member companies. For more information on OIEC, visit www.oiec.org. You can also call Tom Schroedter at (918) 594-0400, or email tom@oiec.

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