(Source: PRNewswire-FirstCall)
OKLAHOMA CITY, July 24 /PRNewswire-FirstCall/ -- The Oklahoma Corporation Commission on Friday signed an order approving a $48 million rate increase for Oklahoma Gas & Electric Company (OG&E). While rates will increase for OG&E customers, the actual amount of monthly bills will be lower as a result of lower natural gas prices. The approval also clears the way for the company to launch an innovative program that will turn Norman into one of the country's first "smart grid" communities.
By a 3-0 vote, the Commission approved the rate increase for OG&E's Oklahoma customers - the company's first increase in base rates since 2006. Residential customers will see a monthly increase of about $6.50. However, that increase will be offset by lower natural gas prices that are allowing OG&E to reduce the fuel costs it passes along to customers. The new rates and lower fuel costs will be put in place in August. The lower fuel costs, which will remain in effect for the next 12 months, will be reviewed in 2010 and adjusted if necessary.
"We believe the Commission's approval supports a balanced outcome - allowing OG&E to continue to make needed investments in its electric system while providing for economical electricity for our customers," said Pete Delaney, OGE Energy Corp. chairman, president and CEO.
The Commission also approved OG&E's proposed rate design which moves rates much closer to the actual cost of service for each rate class. This will provide customers with appropriate price signals in preparation for the deployment of the company's smart grid program.
Norman will become the company's first Positive Energy Community. It will be among the first cities in the country to be equipped with new digital electric meters and hundreds of in-home "energy portals" that will help customers manage their electricity use and save on their bills.
OG&E plans to install 42,000 new digital meters across Norman by next summer. During the same time, about 2,200 Norman residences will be equipped with new programmable thermostats and energy-use devices to help customers track and control their electricity use.
"More than just new technology, OG&E's smart power initiative will transform the way we operate and interact with customers," Delaney said. "Our Positive Energy philosophy, which includes smart power, is all about empowering our customers, giving them choices about how they use energy while encouraging them to use it wisely."
In part because of its significant student population, Norman has a large number of meter-based changes in service that today require OG&E field personnel and vehicles to be dispatched thousands of times a year.
