The Oklahoma Corporation Commission today approved an agreement establishing a mechanism for storm damage cost recovery for AEP/Public Service Company of Oklahoma (PSO).
All the parties to the case asked the Commissioners to approve the agreement. The parties were PSO, the OCC’s Public Utility Division staff, the Oklahoma Industrial Energy Consumers (OIEC), and the Attorney General, who represents ratepayers before the Commission.
The agreement establishes a mechanism for the recovery of PSO’s damage costs from the January 2007 and December 2007 storms.
Under the formula, PSO will recovery $12.6 million for the January 2007 storm with no change in ratepayer’s bills.
PSO has until August 1, 2008 to file its claimed actual cost for recovery from the December 2007 storm. All parties will have 30 days to contest the submitted costs.
In the agreement approved today, PSO estimates the total costs from the December 2007 storm will be $70 million. If the Commission were to approve that amount, PSO estimates that would result in a monthly charge (not a rate increase) of $1.40 for the average customer over five years. Again, these are PSO’s estimates.