Regulators at the Oklahoma Corporation Commission have asked Oklahoma Gas and Electric Co. to begin a rate case, saying the utility missed a June 30 deadline to file for a general rate review.
The commission's public utility division wants an administrative law judge to find the utility failed to comply with several commission orders requiring OG&E to file for a rate case using the costs and revenues from 2012 as the basis for calculating new rates for customers.
OG&E has requested a hearing on the matter Sept. 12 in Oklahoma City.
In early August, OG&E filed a request with the commission to modify the dates for a rate review in several orders covering extra costs for its smart meter program, its Crossroads wind farm in Dewey County and for transmission projects requested by the Southwest Power Pool.
The extra costs in the orders, called a “true-up” in regulatory language, were the result of three settlements in 2010 and 2011 between OG&E and other parties, including the attorney general's office and Oklahoma Industrial Energy Consumers, a group of large industrial electricity consumers.
At issue is whether those settlements can be modified. Brandy Wreath, director of the public utility division, said doing so would create a bad precedent for future settlements. He said the commission lacks jurisdiction to modify the orders.
“The commission is duty bound to enforce the orders it issues, and the parties under the direction of commission orders must adhere to them,” Wreath said in a filing this week.
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The commission is duty bound to enforce the orders it issues, and the parties under the direction of commission orders must adhere to them.”
Director of the public