Jul. 25--Oklahoma Gas & Electric Co. customers will notice a higher rate on their August bill, but most still are expected to pay less for their electricity because of a drop in natural gas prices.

The Oklahoma Corporation Commission approved the $48 million rate hike Friday, accepting a compromise deal reached earlier this month by the electric company and other interested parties. It is the company's first rate increase since 2005.

"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," OGE Energy Corp. Chairman Pete Delaney said.

OG&E initially sought a $110 million rate increase in February, only to have commission staff suggest only a $35 million raise. Six days of negotiations led to the July 2 compromise.

Bill may go down Average residential customers, who use about 1,500 kilowatts a month, are expected to see a slight reduction in their monthly bill for the next year.

The deal also provides for additional savings for low-income customers and senior citizens.

AARP Oklahoma President Marjorie Lyons said she was pleased with those cost-cutting measures, but she still is concerned about "time-of-use" pricing that means electricity is more expensive when it is more in demand.

The settlement deal on OG&E's rate hike was supported by the state Attorney General's office, Corporation Commission staff, Oklahoma Industrial Energy Consumers, OG&E Shareholders Association, Walmart Stores East and Sam's East Inc., AES Shady Point as well as the PowerSmith Cogeneration Project.

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