Public Service Company of Oklahoma (PSO) has filed an application with the Oklahoma Corporation Commission (OCC) to update its prices to reflect the costs of investments in its system to strengthen the electric grid, meet federal environmental requirements, and better serve customers.
These investments are already in service and providing benefits to customers.
PSO’s application requests that its prices increase by $156 million, or about 11 percent. For a typical residential customer the increase will be approximately 50 cents/day.
The price adjustment request reflects more than $625 million of new investments PSO has made in the system, which are not included in current prices.
Costs to comply with mandated federal environmental regulations make up approximately $225 million, or more than one-third of PSO’s total investment.
The completion of a three-year, $111 million project to install Automated Metering Infrastructure across the state, which resulted in the installation of more than 530,000 new digital meters, makes up another significant part of the investment.
These new meters provide an unprecedented amount of energy information to customers and coupled with programs such as PSO’s Power Hourssm, allow customers to better manage energy use and save money.
The remaining investments relate to costs associated with ongoing installation of new poles, wires, transformers, transmission facilities and substations that have been constructed or installed since 2015 to replace aging equipment and to serve new customers.
“PSO is committed to investing in a stronger, smarter and cleaner energy grid, and providing customers the highest quality, safe and efficient service they rely on to power their homes and businesses,” said Stuart Solomon, PSO president and chief operating officer. “At the same time, we’re working to be as efficient as possible and will continue to provide excellent power reliability at prices that remain significantly below national averages.”
PSO’s current prices are based on costs from 2014 and early 2015, and do not include recent investments that 1) strengthen the electric grid, resulting in fewer and shorter power outages; 2) result in cleaner air and greater use of efficient and environmentally friendly power sources like low cost natural gas and Oklahoma wind energy and, 3) provide new programs that make it easier for customers to do business with PSO.
PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving more than 545,000 customers in eastern and southwestern Oklahoma.
Based in Tulsa, PSO has approximately 3,800 megawatts of generating capacity, and is a significant provider of wind energy in the state.