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OIEC Successful in its Appeal of PSO’s Proposed Methodology for Recovery of Wind Contract Costs
By
2009-07-31
 
TULSA, OKLA. – Oklahoma Industrial Energy Consumers, an organization of large industrial companies, today announced that it was successful in its appeal to the Oklahoma Corporation Commission of a decision by an Administrative Law Judge that would have placed a disproportionately large percentage of PSO’s wind contract costs on industrial customers.

At issue was PSO’s request to recover all costs incurred from two, 20-year wind power resource contracts through PSO’s fuel cost adjustment rider.

OIEC argued in its appeal that the wind energy costs should be allocated to PSO’s customer classes on a “demand basis” rather than an “energy basis” because there are no costs associated with the fuel component with wind energy. Unlike PSO’s coal and gas plants, there are no fuel costs with wind production because wind is free. The only costs being charged under the contracts are the costs of the assets used to produce the power.
 
"OIEC’s successful pursuit of its appeal is a demonstration of OIEC’s commitment to actively participate in cases on behalf of Oklahoma’s industries to advocate for fair utility rates,” said Schroedter.

OIEC works to ensure just and reasonable utility rates for OIEC members based upon the utilities’ cost of providing service to those members. 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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