A state corporation commissioner is calling for an independent party to review 2021 winter storm costs.
On Monday, Commissioner Bob Anthony released a statement related to rate hike cases from Oklahoma Natural Gas, Oklahoma Gas & Electric, and Public Service Company of Oklahoma. The three utilities all increased rates as a result of Winter Storm Uri that struck Oklahoma in February 2021.
In the statement, Anthony points to a prudence review completed in 2002 after a particularly cold winter that saw the price of gas climb. Anthony’s statement says the review conducted by an outside party saw $34.3 million in overcharges from Oklahoma Natural Gas returned to consumers. Another $14 million in savings for ratepayers was estimated due to the renegotiation of contracts.
Anthony says both the commission and utilities failed ratepayers. While the commission didn’t put forth enough effort to review 2021 costs that were passed to consumers, utilities neglected to “investigate the legitimacy of the astronomical prices they paid for natural gas, especially the possibility that those prices were the result of price-gouging, fraud, unfair practices, inappropriate contract provisions, or market manipulation.”
At a meeting of the Oklahoma Corporation Commission on Wednesday, Anthony reiterated his views that additional oversight is needed.
“We’re just talking about tens and hundreds of millions of dollars here,” said Anthony. “I think it might be beneficial to hire an outside expert like we did 20 years ago and see what they come up with.”
As Oklahomans are reportedly struggling to pay their higher utility bills, Big Oil has posted record profits. Reuters reports in 2022 oil companies saw more than $200 billion in profit.
