Sep. 30--Oklahoma Gas and Electric Co. will not need to increase customers' bills to recover additional fuel costs because natural gas prices have dropped in recent months, the company announced Tuesday.

Earlier this year, OG&E, which serves 765,000 customers in Oklahoma and eastern Arkansas, told the Oklahoma Corporation Commission it needed an average $15 per-month increase on bills beginning July 1. OG&E vowed to only recover about half of its unrecovered fuel costs through the summer months and would review its adjustment in the fall. "During the last few months, natural gas prices have declined, and we've decided not to increase the fuel-cost recovery from the current level," Howard Motley, OG&E vice president of regulatory affairs, said in a statement. "We are pleased for our customers and appreciate the commission supporting OG&E's plan."

The company likely will continue to see fluctuating natural gas and coal costs for its generation plants, Motley pointed out. He added that OG&E will work with the Corporation Commission to address these changes and hopefully reduce short-term impacts of spikes or drops in prices.

AEP-PSO, which provides electrical power to much of the Tulsa area and about 520,000 customers statewide, also added an average $17.50 monthly

fuel-cost adjustment earlier this year. The fuel-cost hike, however, was approved for an annualized, rather than quarterly, basis.

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