Public Service Company of Oklahoma seeks $172.4M increase to annual revenue

The Public Service Company of Oklahoma (PSO) filed an application for its Grid Security, Transformation and Efficiency Plan (STEP) last week to recover approximately $70 million in new investments.

Amounting to an annual revenue requirement increase of $172.4 million — an approximate 10.67 percent increase — the company would use the funds to cover investments into grid security and modernization, federal environmental requirements, as well as efficiency efforts. For the average customer, the updated costs will take the form of just over 1 cent per kilowatt hour, and PSO’s rates would remain about 24 percent below the national average, even with the cost increase.

“At PSO, we’re committed to investing in a stronger, smarter, and cleaner energy grid and providing customers the highest quality, safe and reliable service they rely on to power their homes and businesses,” PSO President and COO Peggy Simmons said. “At the same time, we’re working to be efficient and to provide excellent power reliability at prices that remain significantly below national averages.”

A large chunk of the requested increase stems from federal environmental requirements — approximately one-third of the total cost. The rest are split between updates and grid hardening for extreme weather.

While approval depends on the Oklahoma Corporation Commission (OCC), elements of the STEP plan are already in service. Customers merely aren’t being charged for those extra benefits yet, which include attempts to strengthen the grid, move the company toward more renewable and environmentally friendly resources such as natural gas and wind, and offer new programs and service options.