Public Service Company of Oklahoma (PSO) filed with the Oklahoma Corporation Commission (OCC) Wednesday its Grid Modernization and Efficiency Plan, which proposes the adoption of performance-based rates (PBR).
In addition to adopting PBR, the Grid Modernization and Efficiency Plan proposes replacing and upgrading aging electric infrastructure and investing in new technology to boost reliability and efficiency. The filing also requested a rate increase and lower charges to customers for purchased power and fuel used in power generation.
The proposed PBR would tie the company’s financial condition to its ability to meet a set of performance incentive measures (PIMS).
“Customers benefit from our financial condition being tied to the achievement of certain levels of reliability, safety and customer satisfaction,” Emily Shuart, director of regulatory services for PSO, said. “They also benefit from reduced price volatility since rates would be gradually adjusted as costs go up or down. PSO remains committed to providing our customers with safe, reliable, and affordable service, and our proposal holds us accountable for accomplishing that.”
The filing includes a request for a rate adjustment to recover increased costs related to aging infrastructure, storms, taxes, and other expenses. The overall rate increase request is $88 million. For a typical residential customer, the increase would be approximately $7 per month.
The filing also includes a request to lower charges to customers for purchased power and fuel used in power generation. Beginning with October bills, most customers, including all residential customers, would see a decrease in the amount they pay for purchased power and fuel for power generation. These lower fuel charges would decrease the overall bill for the typical residential customer by approximately $5 per month, PSO said.
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