PSO received final approval for a rate hike of $12 a month for the average residential customer from the Oklahoma Corporation Commission. But, because fuel costs to generate electricity are down, the average customer is getting a $17 a month credit.
It's a situation causing confusion among some PSO customers who asked 2 News to shed some light on how this happens.
"PSO began charging the $12 rate increase in October 2024," said Trey Davis with the Oklahoma Corporation Commission. The commission allows utilities to implement rate hikes on an interim basis while it decides whether to give final approval. It gave final approval on Jan. 15.
The hike pays for improvements to the grid and transmission lines PSO uses to get power to homes and businesses according to the utility's Matt Rahn, "New technology and repairing the grid to make it stronger and more resilient resulting in fewer and lesser outages for our customers."
Customers receive credit because the cost of fuel PSO uses to generate electricity went down, according to Davis.
"In November, a fuel adjustment clause was implemented, which credited or reduced bills by $17, which resulted in a net decrease to PSO customers of $5 per month on average," he said.
The rate hike is permanent, but the fuel adjustment is not, according to PSO's Matt Rahn.
PSO evaluates fuel costs twice a year and adjusts customer bills accordingly in a process reviewed by the Oklahoma Corporation Commission. PSO makes no profit on the cost of fuel for generation and passes that true cost to the customer. The next fuel adjustment will be seen in customers bills in May 2025, followed by another adjustment in November.
AARP of Oklahoma is disappointed with the Corporation Commission's decision to finalize the rate hike.
“AARP Oklahoma is disappointed by the Oklahoma Corporation Commission's decision to approve Public Service Company of Oklahoma’s (PSO) $119.5 million rate increase. This unprecedented hike, which went into effect on an interim basis on October 23, saddles residential customers with an extra $12 per month, or $144 annually, and comes as PSO seeks two additional rate increases in 2025 which would further increase rates by more than $12 per month.
Seniors, especially those on fixed incomes, have told us they must sacrifice and have to choose between food, medicine and keeping the lights on. AARP Oklahoma will continue to fight against these rate increases with no end in sight and will advocate on behalf of PSO residential customers who deserve better.”
PSO urges customers struggling to pay its bills to call the customer service number on their bill, or reach out through its payment assistance link.
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