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AEP-PSO Rates To Increase by at Least 15% Under PSO Settlement with EPA and Sierra ClubBy
2013-01-08
OIEC’s independent review of PSO’s economic analysis of the EPA Settlement shows that the cost to ratepayers in Oklahoma will be nearly $4 billion more than the Plan mandated by EPA early last year and will result in a first year rate increase for customers of at least 15 percent when compared to PSO’s last-approved rates. Future rate increases due to the EPA Settlement will be even higher as PSO will have to replace existing coal generation that will be retired under the Settlement with more expensive energy.
OIEC supports a less-costly plan worked out with other utilities and state environmental officials, but PSO has abandoned that plan. OIEC, which represents manufacturers and other companies that collectively employ more than 10,000 Oklahomans, has recommended that the Oklahoma Corporation Commission deny PSO’s Application for approval of its Settlement Agreement with EPA.
“While AEP-PSO's Settlement with the EPA may benefit the company and certain interested stakeholders, our evidence shows that the impact of this Plan on Oklahoma consumers, which include families, businesses, churches, cities and towns and retirees, will be far greater than the company is letting on,” said Tom Schroedter, executive director of OIEC. “Charging ratepayers billions of dollars more than necessary will have a far-reaching ripple effect on the state's economy. Manufacturers will not be able to pass on increased production costs to their customers which will make Oklahoma manufacturers less competitive and could result in the relocation of jobs to other states or the shutdown of facilities in Oklahoma.”
The original Plan worked out by utilities and state environmental officials, proposed a much more cost-effective and common-sense approach to address compliance with EPA’s Rules regarding visibility in national parks and wildlife areas while at the same time preserving fuel diversity on PSO’s system. The state’s approved regional haze compliance plan would cost ratepayers billions of dollars less than the EPA Settlement, making it less disruptive to job creation and economic development efforts. The state plan is currently under review by the 10th U.S. Circuit Court of Appeals, which has issued a stay of the Federal Implementation Plan.
OIEC works to ensure just and reasonable utility rates for OIEC members. OIEC has been active on behalf of industrial and other large consumers of energy for more than 15 years, successfully advocating for utility cost reductions or avoidance of utility cost increases for its member companies. For more information on OIEC, call Tom Schroedter at (918) 594-0400. < < Back to News