State AG Eyes PSO Rate Cut

Weeks after its $2 billion filing, Oklahoma Attorney General Drew Edmondson sought a $22.8 million reduction in the rate Public Service Company of Oklahoma customers pay for electricity.
The utility, seeking a rate increase of $49.4 million, wants to spend $2 billion on system wide improvements.
In testimony filed last month before the Oklahoma Corporation Commission, Edmondson asked the commission to lower PSO’s rates.
“After reviewing PSO’s application, our expert disagreed with the company’s arguments for an increase and instead concluded that a reduction is justified,” Edmondson said. Over the next five years PSO plans an “unprecedented” level of investment, said Stuart Solomon, PSO president and COO.
“If approved, this proposal will provide a less costly and more efficient regulatory approach to facilitate these investments, Solomon said.
The rate proposal contains three major components:
1. A $49.6 million overall increase in base rates to enable PSO to recover increased costs of providing service and to cover investments already made.
2. A proposal to adopt an annually adjusted rate mechanism to efficiently facilitate the significant investment PSO will be making in new facilities over the next several years.
3. A request to approve several new and restructured tariffs to allow PSO to begin to reduce the relationship between its revenues and its sales volumes, and to implement some demand side management tariffs to provide better price signals to customers.
PSO’s planned investments over the next five years include new generation facilities ($1.12 billion), new transmission substations and lines ($302.4 million) and new distribution lines and equipment ($582.4 million).
Tulsa-based PSO is a unit of American Electric Power. PSO is an electric utility company serving approximately 514,000 customers in eastern and southwestern Oklahoma. PSO has more than 4,000 megawatts of generating capacity, and is the largest provider of wind energy in the state.
AEP is one of the largest electric utilities in the U.S. ?

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