Public Service Company of Oklahoma (PSO), a subsidiary of American Electric Power (NYSE: AEP), today filed a base rate increase proposal at the Oklahoma Corporation Commission, while at the same time asking commissioners to delay any rate changes arising from the case until the end of June 2011.
 
Today’s filing meets the terms of an agreement reached in a 2009 case in which PSO sought OCC approval for a rider to recover the cost of investments to provide reliable electric service. Among other things, the Final Order in that case required PSO to file a base rate case no later than July 15, 2010.
 
While the filing supports the case for an increase, PSO is asking the Commission to delay the effective date of any increase for one year, primarily because PSO’s rates have recently been reviewed and while this filing shows that current rates provide revenues that are lower than approved levels, they’re generally reasonable and PSO could endure a short delay without undue hardship.
 
PSO’s filing shows that its current rates do not allow it to collect enough money to cover its costs by $52 million.
When approved, the net increase for a residential customer using 1,000 kilowatt-hours per month would amount to $3.83 per month or about 13 cents per day. After the increase, the average rate for a residential customer using 1,000 kWh/month would be 8.81 cents/kWh, which is 21 percent below the national average of 11.2 cents/kWh.
 
"Electricity usage continues to climb in Oklahoma and PSO has invested hundreds of millions of dollars to serve that growth and increase the reliability of service to our customers," said Stuart Solomon, PSO president and chief operating officer. "The increase we’re seeking is necessary for PSO to have the financial strength to continue to make these needed investments in our system to provide reliable, affordable energy and meet our customers’ needs and expectations."
 
PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving more than 530,000 customers in eastern and southwestern Oklahoma. Based in Tulsa, PSO has 4,405 megawatts of generating capacity, and is the largest distributor of wind energy in the state.
 
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.