8-KOther Events

ONEOK INC /NEW/ 8-K Report (Nov 21, 2001)

Filed November 21, 2001For Securities:OKE

Summary

ONEOK, Inc. (OKE) has filed an 8-K report on November 21, 2001, disclosing a significant regulatory dispute concerning its division, Oklahoma Natural Gas Company (ONG). ONG is challenging an order from the Oklahoma Corporation Commission (OCC) that prevents it from recovering $34.6 million in outstanding gas costs incurred during the previous winter. The company plans to appeal this order to the Oklahoma Supreme Court and has requested a postponement of the OCC's decision while the appeal is pending. ONEOK is currently evaluating the potential financial impact of this commission order on its overall earnings, which is a key concern for investors assessing the company's financial health and future profitability.

Key Highlights

  • 1ONEOK's division, Oklahoma Natural Gas Company (ONG), is seeking to overturn an Oklahoma Corporation Commission (OCC) order.
  • 2The OCC order denies ONG the right to collect $34.6 million in outstanding gas costs from customers.
  • 3These unrecovered costs were incurred to serve customers during the previous winter season.
  • 4ONG plans to appeal the OCC's decision to the Oklahoma Supreme Court.
  • 5The company has requested the OCC to postpone the enforcement of its order pending the appeal.
  • 6ONEOK is assessing the potential impact of this regulatory decision on its earnings.

Frequently Asked Questions

The core issue is that ONEOK's division, Oklahoma Natural Gas Company (ONG), is being denied the ability to recover $34.6 million in gas costs by the Oklahoma Corporation Commission (OCC). ONG disagrees with this order and plans to appeal it.

The amount directly at stake is $34.6 million, which represents the outstanding gas costs that ONG is seeking to recover from its customers and which the OCC has denied.

ONEOK, through ONG, intends to appeal the OCC's order to the Oklahoma Supreme Court and has requested that the OCC delay enforcing the order while the appeal is in process.

ONEOK is currently assessing the potential impact of the OCC's order on the company's earnings. The outcome of the appeal could affect profitability if the company is ultimately unable to recover these costs.