As state regulators review PSO’s latest rate proposal, the company is temporarily hiking up average monthly bills starting Wednesday.
The utility said in an email to customers the increase comes from investments that are “strengthening reliability and building a more resilient energy grid for the future.”
PSO applied for a 15% rate increase early this year to fund its investments, which would average $25 for residential customers. A settlement reached between Attorney General Gentner Drummond and PSO in June could lower the final percentage to 1%, or an average of $2.45.
But hearings on the rate case are ongoing and a final vote has not been taken.
“With inflation through the roof, consumers are already paying too much for goods and services,” Drummond said in a news release. “My office will continue fighting to ensure utility customers receive safe, reliable service at rates that are fair, just and reasonable.”
Rahn said the settlement balances customer affordability with grid reliability.
“The proposed settlement reflects a lower overall amount than PSO originally requested and includes several adjustments and credits that reduce the impact on customer bills,” Rahn said. “As a result, if the settlement is approved, the final bill impact for customers would be lower than the interim rate impact that is still scheduled to begin July 1.”
According to the Oklahoma Corporation Commission’s rules, utilities can issue interim rates if a vote hasn’t been taken within 180 days after the company’s application. PSO’s application was filed Jan. 2.
“PSO understands any change to bills can be concerning and remains focused on delivering long-term value for customers,” PSO’s email states.
Company spokesperson Matt Rahn said PSO settled on $11 by calculating a number closest to what the outcome could be. He said the interim dollar amount doesn’t include adjustments that could further reduce final rates.
Should the commission approve a final rate increase less than the interim amount, like the amount in the proposed settlement, PSO will be required to issue refunds.
This isn’t the first time a utility company has issued interim rates. Average residential PSO customers saw an additional $12 on their bills in 2024 before the commission approved the dollar amount in early 2025. Oklahoma Gas & Electric customers had a 6.6% interim rate increase in July 2024, which was later affirmed by the commissioners.
Hearings on the rate case are expected to continue through early July.
—
StateImpact Oklahoma is a partnership of Oklahoma’s public radio stations which relies on contributions from readers and listeners to fulfill its mission of public service to Oklahoma and beyond. Donate online.
