Editorial: Corporation Commission must scrutinize every dollar requested

Power lines are seen in Owasso in February 2021. The Oklahoma Corporation Commission will be reviewing requests for increased rates for public utilities.

Mike Simons, Tulsa World file

The latest rate increase request from Public Service Company of Oklahoma has consumers wondering when the financial hits will end.

The proposed hike comes as part of a rate review. If approved, the raise of about $14 a month on average would be the third increase for PSO in the past year. The utility has about 560,000 customers. Its other two increases were for temporary cost recoveries. Pending is an earlier plan to buy three new wind farms and three new solar facilities to diversify power sources and save money long-term; it would raise bills an average of $3.48 a month by the end of 2025.

PSO isn’t alone.

Oklahoma Natural Gas used a securitization measure in January to pay costs from a February 2021 winter storm over 25 years, raising gas bills an average of $8 to $10 a month for about 880,000 consumers during that quarter of a century. In addition, ONG requested a rate increase in April that would increase bills an average of $2 a month.

Oklahoma Gas & Electric raised rates in July by an average of $2 a month. It also added a monthly charge of about $3 a month to pay off the February 2021 winter storm costs. The company serves about 870,000 consumers in Oklahoma and western Arkansas. It has a pending fuel adjustment, but two of the three corporation commissioners have notified the Legislature that they are at an impasse.

Taken together, it seems utility companies are constantly asking the Oklahoma Corporation Commission for more.

The Corporation Commission is tasked with representing consumers by regulating some public utilities along with oil and gas drilling. Its three elected members are a stopgap between consumers and the companies.

There is a balance to strike. The public utilities must make infrastructure improvements and diversify energy sources to protect against future climate changes. The cost of natural gas has jumped by 85% in a year and nearly 300% in two years.

At the same time, consumers are bearing a lot of economic stress. Prices are rising on everything from food to housing to energy. If power and utilities rise too much, consumers won’t be able to keep up.

We encourage the Corporation Commission members to scrutinize every dollar being requested to ensure that the requests are necessary and meet the legal standard of being “fair, equitable and in the public interest.”

We want to avoid disasters like a weakening infrastructure during a storm or excessive heat. We need protections against spikes in energy costs.

The answer is not deregulation. The biggest example of a failed deregulated system is in Texas, where the February 2021 winter storm left 10 million people without power and with exorbitant bills, reaching into the thousands of dollars. Several studies show residential costs for deregulated consumers tend to be higher.

Instead, we prefer that the Oklahoma Corporation Commission hone in on the details to determine the best course of action. We expect them to be transparent and have consumers as their priority.

The utilities also must realize the burden they are placing on consumers, many of whom are facing financial pressure. They need to find payment options and bolster assistance programs to help those in need.