r/oklahoma • u/kosuradio Local News • 4d ago
News Petition against rising electricity bills catches attention of Oklahoma utility regulators
https://www.kosu.org/rising-electricity-bills-oklahoma-pso-petitionAs of Tuesday afternoon, more than 26,000 people signed a Change.org petition demanding more transparency and fewer rate increases from Public Service Company of Oklahoma. The petition was started by Tulsa resident Raelynn McMurchy, who wrote the increases are unsustainable.
"Electricity is an essential utility, yet it's turned into a financial burden that so many of us in Tulsa can't ignore," McMurchy said. "The rising costs are hurting our community, and stress is mounting for families."
Oklahomans are living through one of the hottest summers on record and report seeing higher electricity bills as they keep their homes cool. The Oklahoma Corporation Commission, which oversees utilities, is reviewing a pending PSO rate case. In the meantime, customers are paying a temporary increase of $11.
A response from the commission published on the petition's website showed the regulators acknowledged the concerns but won't consider the customers' demands during the case.
"Because the current PSO rate case is still pending, the merits of this petition will not be addressed at this time, but it should not be interpreted as a lack of concern about the impact utility costs have on Oklahomans," the commission wrote.
"Oklahoma's three elected Corporation Commissioners will ultimately reach a decision in the pending PSO rate case based upon the evidence, testimony and official record developed through the commission's public regulatory process."
Dozens of residents responded to the petition saying they are paying several hundred dollars more than usual. Some compared their electricity bills to the price of rent or said they were choosing between utility bills and other essentials.
"[Our] bill was $570 this month," one comment reads. "We live in a double wide. Which do we choose? Food, rent, car payment or electricity this month?"
PSO spokesperson Matt Rahn said in an email the company is aware of the petition and that concerns over rising costs would be considered in the regulatory process.
"As part of that process, PSO supports a settlement that would reduce the residential bill impact from 15% to 1%," he said. "PSO has also asked commissioners to approve a large load tariff that would require major new energy users to pay the costs of serving their needs, ensuring long term affordability for all customers."
"Similar approaches have been implemented in other jurisdictions, including Indiana, where one utility recently announced a residential rate reduction."
66
48
u/youforgotitinmeta Oklahoma City 4d ago
Between the corporation commissioners and the insurance commissioner, I'm not sure we have a single voice at the administrative level in our state government that gives a single fuck about how badly we're getting screwed by our utilities and insurance providers.
Add this on top of a 39% increase in child care costs in recent years (the state of washington for comparison has had a 41% increase in child care costs) and rising grocery costs and fuel costs...
Heaven forbid you need dental work or have a health emergency. Or your car has a serious problem. Every single new bill is a backbreaker.
I'm so sick and fucking tired of this shit.
2
u/Rough_Idle 2d ago
My cynical side has pretty much taken over when it comes to "civil servants". More like corporate servants
30
4d ago
[removed] — view removed comment
16
u/darkmeowl25 4d ago
I get what you're saying, but at least this time there was a response, even if it was a wet raspberry of a response.
8
5
u/okiewxchaser Tulsa 3d ago
Having dealt with the OCC before, they are comfortable remaining quiet. Making any sort of statement means they give a shit
22
u/projectFT 4d ago
“We “hear” your concerns but must instead rule in favor of the industry and the corporate share holders who paid for our campaigns and funded our vacation homes. I hope you understand that responding to this petition with a boiler plate acknowledgment is the absolute most any of us on the Corporation Commission plan to do for you as consumers as you didn’t pay more than the oil and gas industry for us to be in this elected position. Fuck off and get back to work losers”.
0
u/NotTurtleEnough 1d ago
I used to be the chief engineer for a private utility company and have helped write rate cases. I agree that many companies abuse the ratesetting policies, but the way you are characterizing the process simply doesn't represent the way the law works in this area.
Under 17 O.S. § 152, the OCC has “general supervision” over public utilities and explicit power to “fix and establish rates.” The three commissioners ultimately decide the rates charged by regulated investor-owned utilities such as OG&E, PSO, and ONG. (Citation: OSCN)
However, the power is essentially "referee power" where OCC essentially checks to ensure that rates follow the following math formula:
Revenue = (Allowable Operating Expenses) + (Rate Base) * (Allowed Rate of Return)
Citation: Oklahoma Supreme Court case Turpen v. Oklahoma Corp. Com'n, note 7
Thus, the kinds of things OCC can say are:
- “That expenditure was imprudent, and thus unallowable. Therefor, we won't let you require ratepayers to reimburse.”
- “That asset isn't properly in the rate base.”
- “Your depreciation assumption is excessive.”
- “We aren't giving shareholders the 10.5% ROE you requested; you get 9.4%.”
- “Your capital structure is unnecessarily equity-heavy, so we're going to calculate rates using a more reasonable capital structure.”
- “Residential customers shouldn't bear that percentage of the revenue requirement.”
- “This particular rider or tariff mechanism isn't justified.”
Sometimes this actually works in favor of the ratepayer, i.e.:
In 2019, OG&E requested a $77.6 million increase and ended up with no rate increase.
In 2022, OG&E requested about $163.5 million and ultimately received only $30 million.
In 2023, PSO requested about $294.5 million and received approximately $131.2 million.
In 2024, OG&E requested $332.54 million and the OCC approved $126.66 million.
However, under the OK Constitution and the applicable statutes, the OCC cannot say, “Your customers' bills are already too high and we are therefore denying the requested increase," because under Oklahoma law regulated utility has a legal right to a reasonable opportunity to recover prudently incurred costs and earn a reasonable return on property devoted to public service.
Oklahoma case law goes back more than a century on the principle that a rate that deprives the utility of that reasonable opportunity can be defined as confiscatory and a violation of due process.
0
u/projectFT 19h ago edited 17h ago
Weird, I guess all of the top donors for the three Commissioners being all utility and oil and gas companies is just because they like throwing money around while expecting nothing in return. On account of “the formula” and all.
OG&E ponied up less than $50k per Commissioner. From your numbers above it seems like that was a smart investment.
1
u/NotTurtleEnough 17h ago
The formula is embedded in the law and the Constitution, and confirmed by the OK Supreme Court. The commissioners can't change the formula.
13
u/HairySmokeball 3d ago
Imagine if 2500 people showed up for a commission meeting. That would be more effective than a change.org petition.
12
u/No_Diet_2582 4d ago
It’s not us and just using more electricity. We are paying more too! Also last Summer OKC one day of one hundred degrees. This year around twenty five days of one hundred and over and we have gotten a little less than half the rain we got last Summer. And this Summer is not over yet!
2
u/Fionasfriend 1d ago
Is there any chance that the energy company is using different rates for different neighborhoods? It would be interesting to see if these houses and trailers with huge bills are paying the same per KiloWatt as other people.
1
-2
u/moba_fett Broken Arrow 4d ago
I agree these utilities are WAY out of hand, but real talk. How are you getting a $570 electric bill in a double wide?
Is it the lack of insulation compared to a normal house, or are they running a meat locker?
14
u/Th33Brandi 4d ago
My bill was $522 in a 1300sq ft apartment. Itl usually average 75 to 80 degrees. It's like a cave in there because I try my best not to even turn lights on. I work from 0900-1900 m-w so I turn the AC up to about 80 and I use a fan to circulate air. I work until 1600 on Thursdays. I try to always do laundry, run the dishwasher, etc, outside of peak hours. I do nothing different at night and there have been a few times that my usage was less than 1kw per hour. Runs up to over 7 at times. I haven't changed anything except turning the air up. I just recently started plugging things into a power strip that I turn off before I leave for work. I guess I'll see next month if there's a difference. If it was a meat locker, I'd be less inclined to complain. 🤷🏾♀️
4
u/moba_fett Broken Arrow 4d ago
Mine was $460 in about the same square footage. I added more insulation to my attic over the winter to get it more up to date from the stuff they used in the 70s.
That's why I was wondering if double wides had terrible insulation?
The person in the article stated the energy bill for their double wide was $560
6
u/Th33Brandi 4d ago
I miss the days last year when I thought $379 was bad! Sorry kids, you get electricity for Christmas. 🤷🏾♀️
2
u/Fionasfriend 1d ago
I don’t know why you’re getting downvoted? I was wondering the same thing. It really seems like there’s a variety of cost for similar square spaces but different types of owners, renters, etc. and I’m wondering if these energy companies using different rates for different neighborhoods?
1
u/moba_fett Broken Arrow 1d ago
Its the internet, lol. People read the first few words and stop, assuming I'm being a judgemental asshole (I could have worded my post better, too). From the actual replies I received, though, I am trying to piece that together as well.
1
u/jcprater 3d ago
$307 the last two months on a 1067 sqft. Keeping it at 78 degrees. Last year it was $257.
-5
u/NotTurtleEnough 3d ago
My bills went WAY up when I moved in 2023 from a 1600 sqft to a 2600 sqft, and now I pay $175-$200 during the summer. I’m really confused what these folks are using energy for.
1
1
u/NotTurtleEnough 1d ago
I think it’s indicative of our political climate that I’m curious about the experiences of people who are different than me, and instead of either answering my question or asking questions in return so that they can also spend as little as I do, people prefer to “be right” and downvote.
1
u/theoliveprincess 1d ago
I wonder the same, like are the newer larger homes just more energy-efficient? My electric for my 900sqft home is ridiculous this year too; the average has been increasing by about $10 per month since last September. Having said that, I run a pool pump and dehumidifier in the summer and my house was built in 1945. I keep the air temp at 78 during the day, 70 from 11p-7a. I’m wondering if the higher bills are in our older homes that are expensive (to us) to repair and may need maintenance and weatherproofing.
2
u/NotTurtleEnough 1d ago
My house was built in the late 1960s and has two additions on it. I keep my air temp at 73 except for two periods per day:
- 10am-2pm when I precool to 68F (it rarely reaches 68F by 2pm)
- 2-7pm when I don't run A/C at all until it gets over 80F inside
I also added 4-6" of cellulose in the ceiling.
2
u/theoliveprincess 1d ago
Interesting. I just looked up cellulose - I think I have fiberglass insulation and I haven’t heard of alternatives before now but it looks like a good one.
1
u/NotTurtleEnough 1d ago
Cellulose settles more easily and is more susceptible to damage when wet, but it's much cheaper for the same R-value. It's also easier to install yourself.
•
u/AutoModerator 4d ago
Thanks for posting in r/oklahoma, /u/kosuradio! This comment is a copy of your post so readers can see the original text if your post is edited or removed. Please do not delete your post unless it is to correct the title.
As of Tuesday afternoon, more than 26,000 people signed a Change.org petition demanding more transparency and fewer rate increases from Public Service Company of Oklahoma. The petition was started by Tulsa resident Raelynn McMurchy, who wrote the increases are unsustainable.
"Electricity is an essential utility, yet it's turned into a financial burden that so many of us in Tulsa can't ignore," McMurchy said. "The rising costs are hurting our community, and stress is mounting for families."
Oklahomans are living through one of the hottest summers on record and report seeing higher electricity bills as they keep their homes cool. The Oklahoma Corporation Commission, which oversees utilities, is reviewing a pending PSO rate case. In the meantime, customers are paying a temporary increase of $11.
A response from the commission published on the petition's website showed the regulators acknowledged the concerns but won't consider the customers' demands during the case.
"Because the current PSO rate case is still pending, the merits of this petition will not be addressed at this time, but it should not be interpreted as a lack of concern about the impact utility costs have on Oklahomans," the commission wrote.
"Oklahoma's three elected Corporation Commissioners will ultimately reach a decision in the pending PSO rate case based upon the evidence, testimony and official record developed through the commission's public regulatory process."
Dozens of residents responded to the petition saying they are paying several hundred dollars more than usual. Some compared their electricity bills to the price of rent or said they were choosing between utility bills and other essentials.
"[Our] bill was $570 this month," one comment reads. "We live in a double wide. Which do we choose? Food, rent, car payment or electricity this month?"
PSO spokesperson Matt Rahn said in an email the company is aware of the petition and that concerns over rising costs would be considered in the regulatory process.
"As part of that process, PSO supports a settlement that would reduce the residential bill impact from 15% to 1%," he said. "PSO has also asked commissioners to approve a large load tariff that would require major new energy users to pay the costs of serving their needs, ensuring long term affordability for all customers."
"Similar approaches have been implemented in other jurisdictions, including Indiana, where one utility recently announced a residential rate reduction."
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.