News Clips
OIEC Files Supreme Court PetitionBy
2009-02-13
“We simply asked our elected commissioners for a hearing to reconsider their rate case order and to ensure Oklahomans are being charged the lowest reasonable electricity rates. But they denied that request by ruling that they no longer had jurisdiction and thus voted to pass this matter to the state Supreme Court,” said Tom Schroedter, OIEC Executive Director.
“We believe the Commission should uphold its constitutional and statutory obligations to decide utility rate cases,” Schroedter continued. “We’ll continue fighting in whatever venue necessary to maintain the Commission’s jurisdiction to review its rate case orders and to reduce an excessive and unjustified electricity rate increase that PSO started charging its customers this month.”
OIEC represents companies employing more than 10,000 people in diverse industries that are key to the economic health of the state. Quality of Service Coalition is an organization that represents cities in northeast Oklahoma such as Owasso and Broken Arrow, as well as trade associations including the Greater Tulsa Homebuilders Association and the Greater Tulsa Realtors.
Leaders from these companies, organizations, municipalities and the City of Tulsa contend that AEP-PSO’s rate increase will result in excessive and unjustified electricity rates at a time when many businesses are either laying off workers or shutting down Oklahoma operations. The $81.4 million rate increase that PSO customers face amounts to a rate hike of between 15 to 20 percent to PSO’s various customer classes. The rate hike is among the largest rate increases ever awarded to an electric utility in the state of Oklahoma.
“On Monday the commissioners sided with AEP-PSO in ruling that they no longer had jurisdiction over PSO’s rate case, thereby rejecting the recommendation of the Oklahoma attorney general’s office, which is responsible for interpreting and enforcing the state’s laws,” said Tom Schroedter. “By surrendering its jurisdiction and relinquishing responsibility to the Supreme Court, the Commission denied Oklahomans the opportunity to be heard. It is the Commission’s constitutional responsibility to ensure that Oklahomans are being charged the lowest reasonable electricity rates. Regardless of legal maneuvering by PSO, we are determined to pursue every avenue for our members and PSO’s Oklahoma customer to receive a fair result on this rate case.”
Key points of petition re: Oklahoma Corporation Commission
• Commission’s Feb. 9 determination that it did not have jurisdiction on motions to reconsider/modify $81.4 AEP-PSO rate case is contrary to law, public policy and reason.
• Commission’s refusal to hear and consider motions on rate case deprives consumers’ Constitutionally-guaranteed right to due process of law.
• Commission’s refusal to consider motions on rate case is contrary to Commission’s own rules.
Key points of petition re: AEP-PSO
• Commission’s authorization of a return on equity to AEP-PSO of 10.5 percent is not supported by substantial evidence and is unreasonable and unfair to ratepayers.
• Commission’s refusal to take into account the revenues realized by AEP-PSo during the six-month post test year period is contrary to state statute.
• Commission’s allowance of legislative-related expense of more than $450,000 in AEP-PSO’s cost of service is not supported by substantial evidence, nor good public policy.
Summary
Ohio-based American Electric Power-Public Service Company of Oklahoma’s rate hike, approved by the Commission on Jan. 14, threatens the ability of Oklahoma’s businesses to compete with businesses in other states, especially for industrial classes of electric utility customers. Under the current rate hike, PSO customers that are small industrial users will pay 20 percent more, while large industrial users will pay 15 percent more.
OIEC, the Quality Service Coalition and the City of Tulsa asks state regulators to reconsider and modify the $81.4 million electric utility rate hike that could have a devastating impact on businesses and low-income Oklahomans during the deteriorating economic situation.
The Quality of Service Coalition is made up of trade associations including the Greater Tulsa Homebuilders Association and the Greater Tulsa Realtors. Also included are the City of Broken Arrow and Owasso, the Broken Arrow Chamber of Commerce, numerous private businesses and individuals. The purpose of QSC is to provide the Commission with the insight of more than 1,000 individuals and consumers who are all customers of PSO. For more information about Quality of Service Coalition’s position, call Lee Paden is spokesman at (918) 743-7007.
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 or the petition filed with the Oklahoma Corporation Commission, call Tom Schroedter at (918) 594-0400.
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