View Full Version : OGE trying to jack the rates up (again)



mimino
04-12-2019, 08:23 AM
Surprised nobody posted this prior (correct me if I'm wrong). Just got this nice little email from our beautiful utility co. It appears we're going to be on the hook for their project selection skills. Not sure how much us little guys can do, but if you feel like sending them a nice little email back, I've bolded some contact info below.




Dear Customer:

Oklahoma Gas & Electric Company (“OG&E” or “Company”) is seeking an annual increase of approximately $76.6 million, which reflects a 4.4% increase over rates set in July of 2018, to recover increased business costs and electric infrastructure investments including costs associated with the Sooner Scrubber and the Muskogee Conversion projects.

The increase, as proposed by OG&E, would raise a residential customer’s bill by approximately 7.7% when compared to current rates. This equals about $7.55 per month on the average residential customer bill. As proposed by OG&E, General Service customers would receive a rate increase of 4.4%. For the industrial rate classes both Power and Light customers (PL) and Large Power and Light customers (LPL) would receive rate increases ranging from 4.6% to 9.8%.

The Oklahoma Corporation Commission (“Commission”) is scheduled to begin hearings before an Administrative Law Judge on OG&E’s request for a rate increase on May 29, 2019, at 8:30 a.m., and continuing each business day thereafter until the hearing concludes, in Courtroom 301 on the 3rd floor of the Jim Thorpe Office Building, 2101 North Lincoln Boulevard, Oklahoma City, Oklahoma 73105. After the hearing, the Commission will issue its final order and any rate changes will become effective after the final decision is issued.

All members of the public, including individual customers of OG&E, will have an opportunity to provide comments on May 28, 2019, beginning at 1:30 p.m. in Courtroom 301, 3rd Floor of the Jim Thorpe Building, Oklahoma City, Oklahoma 73105. Members of the public may also provide written comments by mail to OG&E Rate Case Comments, c/o Office of General Counsel, Oklahoma Corporation Commission at P.O. Box 52000, Oklahoma City, Oklahoma 73152 or by email to PUDsubmissions@occemail.com with “Attention: Public Comment PUD 201800140” in the subject line.

For information concerning this action, contact William L. Humes, Post Office Box 321, MC 1208, Oklahoma City, Oklahoma 73101, Telephone (405) 553-3062, Attorney for Oklahoma Gas & Electric Company; Kyle Vazquez, Assistant General Counsel, Oklahoma Corporation Commission, 4th Floor, Jim Thorpe Office Building, Oklahoma City, Oklahoma 73105 (405) 521-2211; or Jared Haines, Assistant Attorney General, Office of the Attorney General, 313 NE 21st Street, Oklahoma City, OK 73105 (405) 521-3921.

chuck5815
04-12-2019, 10:28 AM
Definitely go to the hearing if you're upset.

It does sound like they've made a number of rookie mistakes and are now asking the rate payers to backstop them.

citywokchinesefood
04-12-2019, 08:55 PM
Definitely go to the hearing if you're upset.

It does sound like they've made a number of rookie mistakes and are now asking the rate payers to backstop them.

I don't see how they could possibly justify this considering they had a net income of over 300 million dollars last year. They can absorb the cost of their own mistakes like we all have to. This is corporate welfare.

OKCisOK4me
04-13-2019, 02:16 PM
It's that basketball court they're building downtown, I'm telling ya!

brian72
04-13-2019, 05:31 PM
I don't see how they could possibly justify this considering they had a net income of over 300 million dollars last year. They can absorb the cost of their own mistakes like we all have to. This is corporate welfare.

You are right on Spot. They'll nickel and dime you to death before you know it. They are a money making machine.

mugofbeer
04-14-2019, 04:30 PM
I'm usually pretty friendly to business but considering their existing profitability and their questionable actions as a corporate citizen downtown, l would be inclined to say no to their request.

Plutonic Panda
04-14-2019, 11:35 PM
Maybe when they fix the f@cking streetlights and bury the utility lines it would be more appropriate for them to come back and ask for a rate increase.

PaddyShack
04-15-2019, 07:55 AM
Can some one explain how OGE is able to operate more or less like a monopoly? I only have 2 choices when it comes to power, make it myself or OGE.

jerrywall
04-15-2019, 08:33 AM
infrastructure

PaddyShack
04-15-2019, 08:44 AM
infrastructure

I would figure that you would want multiple private companies generating power, through a mix of solar, oil, coal, wind, etc. But then the infrastructure of getting the power to homes is done by the local government. Not sure if this would just create a similar situation we have with private government contractors doing work for the military and whether that has been good for cost reason or not.

I just wish there was some sort of competition against OGE to keep their rates competitive. Same goes for AT&T and Cox when it comes to internet. In my neighborhood I only have those two providers. AT&T is the same price but they don't supply the same speeds as Cox. On the flip side I don't find Cox to be the greatest provider. But I only have those two options for somewhat reliable internet service. Satellite being out of the question.

I am fairly conservative and libertarian when it comes to government and economy, but I just feel that utilities like electricity, water, and access to the internet should not be subject to monopolistic practices and certainly should not be pricing people out. I understand things like cable TV being completely left to capitalistic trends, cable TV is not really essential.

AnguisHerba
04-15-2019, 06:02 PM
I would figure that you would want multiple private companies generating power, through a mix of solar, oil, coal, wind, etc. But then the infrastructure of getting the power to homes is done by the local government. Not sure if this would just create a similar situation we have with private government contractors doing work for the military and whether that has been good for cost reason or not.

I just wish there was some sort of competition against OGE to keep their rates competitive. Same goes for AT&T and Cox when it comes to internet. In my neighborhood I only have those two providers. AT&T is the same price but they don't supply the same speeds as Cox. On the flip side I don't find Cox to be the greatest provider. But I only have those two options for somewhat reliable internet service. Satellite being out of the question.

I am fairly conservative and libertarian when it comes to government and economy, but I just feel that utilities like electricity, water, and access to the internet should not be subject to monopolistic practices and certainly should not be pricing people out. I understand things like cable TV being completely left to capitalistic trends, cable TV is not really essential.

OG&E is fully regulated by the Corporation Commission. Any time they wish to raise rates they must file a case before the commission and have their investments and cost to serve fully reviewed. After a six month (sometimes longer) process in which many parties present their view of the case, your elected commissioners (Dana Murphy, Todd Hiett, Bob Anthony) ultimately decide how much of an increase/decrease they should get.

Phone and internet services, on the other hand, have been mostly price de-regulated since the 1980s/1990s.

Oklahoma has the second lowest average electricity price (https://www.eia.gov/electricity/state/oklahoma/) in the nation. Deregulation, while beneficial in some other states, wouldn't help with average prices much here.

Zorba
04-15-2019, 10:05 PM
The letter doesn't say anything about failed projects. It looks like they added a scrubber to the Sooner coal plant that is likely required by law. And it looks like converted another plant (I assume from coal to NG). These are basic capital expenses.

Now I agree, they shouldn't be able to jack up the rates while making large profits.

bombermwc
04-16-2019, 06:35 AM
Yup, those are just cost of doing business. Utilities seem to be the only companies that dont have to work that into their model and just pass it on as if they dont have to pay it. It's nuts.

As for the lights, my understanding is that the city has said this is mostly to blame from copper theft. It takes time and money to get things put back together and we do shoulder the cost of that.

Zorba
04-16-2019, 08:16 PM
Yup, those are just cost of doing business. Utilities seem to be the only companies that dont have to work that into their model and just pass it on as if they dont have to pay it. It's nuts.

As for the lights, my understanding is that the city has said this is mostly to blame from copper theft. It takes time and money to get things put back together and we do shoulder the cost of that.
They do work it into their model, by raising rates. The difference is most companies would just raise rates and be done with with it. Utilities have to prove their rate hikes are reasonable and justified before they can push them through.

mimino
04-16-2019, 09:57 PM
I would figure that you would want multiple private companies generating power, through a mix of solar, oil, coal, wind, etc. But then the infrastructure of getting the power to homes is done by the local government. Not sure if this would just create a similar situation we have with private government contractors doing work for the military and whether that has been good for cost reason or not.

I just wish there was some sort of competition against OGE to keep their rates competitive. Same goes for AT&T and Cox when it comes to internet. In my neighborhood I only have those two providers. AT&T is the same price but they don't supply the same speeds as Cox. On the flip side I don't find Cox to be the greatest provider. But I only have those two options for somewhat reliable internet service. Satellite being out of the question.

I am fairly conservative and libertarian when it comes to government and economy, but I just feel that utilities like electricity, water, and access to the internet should not be subject to monopolistic practices and certainly should not be pricing people out. I understand things like cable TV being completely left to capitalistic trends, cable TV is not really essential.

I hope when 5G rolls out completely, it destroys Cox in the process. Can't stand them. Have been ISP-free for several years now, thanks to my unlimited cell innenet. T-mobile doesn't seem to mind my high double-digit GB a month consumption (yet).

shawnw
04-16-2019, 10:35 PM
I hope when 5G rolls out completely, it destroys Cox in the process. Can't stand them. Have been ISP-free for several years now, thanks to my unlimited cell innenet. T-mobile doesn't seem to mind my high double-digit GB a month consumption (yet).

Same (t-mo is my home internet). Here are my usages stats in GB for the last 12 months:

100
151
223
114
54
92
70
99
81
85
91
72

mimino
04-16-2019, 10:42 PM
Same (t-mo is my home internet). Here are my usages stats in GB for the last 12 months:

100
151
223
114
54
92
70
99
81
85
91
72

gives me hope :) when they throttle you, simply switch to 4g (hspa+) to avoid the lte lags, since not many people use 4g anymore ;)