What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to report that ONEOK, Inc.'s division, Oklahoma Natural Gas Company (ONG), has filed an application with the Oklahoma Corporation Commission to recover significant costs and to establish new accounting policies for future expenditures.

How much money is ONG seeking to recover and for what reasons?

ONG is seeking to recover approximately $24 million in costs. These costs are related to assuming responsibility for customer service lines since 2000, enhanced pipeline corrosion protection efforts, investments in gas in storage, and increasing customer costs.

What is a 'regulatory asset' in this context?

In this context, a 'regulatory asset' means that future homeland-security related expenditures are being proposed to be deferred and accounted for with the reasonable expectation that these expenses will be recovered from customers in the future through future rates or charges approved by the Commission.

What is the potential impact of this filing on ONEOK, Inc. (OKE) investors?

This filing could potentially impact investors by affecting ONEOK's future revenues and profitability, depending on the Oklahoma Corporation Commission's decision. The recovery of these costs could support the company's financial performance, while the classification of homeland-security expenses as regulatory assets suggests an effort to manage future cost impacts.

OKE 8-K SEC Disclosure — Oct 14, 2003

Summary

This 8-K filing from ONEOK, Inc. (OKE) details a significant regulatory filing by its division, Oklahoma Natural Gas Company (ONG), with the Oklahoma Corporation Commission. ONG is seeking to recover approximately $24 million in costs incurred since 2000 related to customer service line responsibility, enhanced pipeline corrosion protection, investments in stored gas, and rising customer costs. Furthermore, ONG is requesting the Commission to classify future homeland-security related expenditures as "regulatory assets," indicating an expectation of future cost recovery. The company also seeks approval for a simplified formula to determine pipeline extension costs for new customers. The outcome of this application will be determined by the Commission after a procedural schedule and hearings, ultimately leading to an order based on their findings.

Key Highlights

1Oklahoma Natural Gas Company (ONG), a division of ONEOK, Inc., filed an application with the Oklahoma Corporation Commission.
2ONG seeks to recover $24 million in costs incurred since 2000.
3Costs to be recovered include those related to customer service lines, pipeline corrosion protection, gas in storage, and rising customer costs.
4ONG requests the deferral of future homeland-security expenditures as 'regulatory assets' for accounting purposes.
5This classification implies an expectation of future recovery for security-related investments.
6ONG is also seeking approval for a simplified cost-determination policy for extending pipelines to new customers.
7The Commission will conduct hearings and issue an order to determine the outcome of ONG's application.

ONEOK INC /NEW/ 8-K Report (Oct 14, 2003)

Summary

Key Highlights

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