Oklahoma Gas & Electric Co. customers will see the rate portion of their monthly electric bills go up by an average $6.50 beginning in August after state regulators approved a $48 million annual increase Friday.

Oklahoma Corporation Commissioners voted 3-0 to sign off on the settlement reached earlier this month with OG&E, the state Attorney General's office and other groups. The overall effect on bills will be not seen immediately because of a reduction in the fuel cost factor due to lower prices for natural gas used in power generation.

The average monthly electricity use of customers is 1,500 kilowatt hours. The overall bills will drop by an average 63 cents, according to reports.

OG&E officials originally sought a rate hike of more than $100 million, according to reports. The company argued that it has invested in significant upgrades and plans future Smart Grid and digital meter technologies.

"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 economic electricity for our customers," Pete Delaney, chairman and CEO of parent Oklahoma City- based OGE Energy Corp., said in a statement.

Several Oklahoma utilities have sought state approval for rate increases this year. The first was American Electric Power-Public Service Company of Oklahoma, Tulsa's primary electricity provider, which added an $81.4 million hike in January.

Oklahoma Natural Gas Co. filed a rate application for a $66.08 million increase last month.

The Corporation Commission has six months to hear arguments and vote on the request.

The OG&E increase is that company's first since 2006, according to reports. The lower fuel-cost factors will be in place at least until 2010, company officials said.

The company plans to install 42,000 new digital meters in Norman by next summer.

OG&E is the state's largest electrical service provider with 772,000 customers in Oklahoma and western Arkansas.

"More than just new technology, OG&E's smart power initiative will transform the way we operate and interact with customers," Delaney added.

The state Corporation Commission also approved a $10 per month credit to OG&E customers in the Low Income Home Energy Assistance Program. Senior citizens who participate in OG&E's Time of Use program will receive a five-month, $5-per-month credit.

Shares of OGE Energy rose 38 cents to $30.21 Friday on the New York Stock Exchange. The parent company is scheduled to report quarterly earnings Aug. 5.

Rod Walton 581-8457

Originally published by ROD WALTON World Staff Writer.

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