As one can imagine, the business of generating electricity and delivering it safely, reliably and responsibly to customers across cities and states is a complicated business. There are numerous safety, reliability and environmental regulations that must be adhered to when generating electricity and delivering it to customers. State and federal regulatory entities have structured a complex web of regulations that ensure power is available when a customer flips on his or her light switch.
State and federal regulators also make sure that utility rates are fair and reasonable. In Oklahoma, rates are set by the Oklahoma Corporation Commission and are based on costs incurred by utilities. Ratemaking involves complicated proceedings with detailed accounting, cost reviews, witness testimony and discovery. In a rate case proceeding, thousands of documents are produced and examined over a period in excess of six months to determine what utility costs should be recovered from customers and how much of a profit utilities should have the opportunity to receive.
Customer rates in Oklahoma are some of the lowest in the country, consistently 30% below the national average. These low rates result from Oklahoma utilities’ effective management of costs and the state’s regulatory processes.