8-KOther Events

ONEOK INC /NEW/ 8-K Report (Jan 30, 2004)

Filed January 30, 2004For Securities:OKE

Summary

ONEOK, Inc. (OKE) has filed an 8-K report detailing a significant regulatory development for its division, Oklahoma Natural Gas Company (ONG). On January 30, 2004, the Oklahoma Corporation Commission approved a rate adjustment plan allowing ONG to recover an additional $17.65 million in annual revenue. This adjustment is intended to cover previously unreflected costs, including investments in service lines, cathodic protection, increased uncollectible revenues, and returns on gas in storage. The approved rates will be in effect for a maximum of 18 months, with a portion designated as interim and subject to refund in a future rate case.

Key Highlights

  • 1Oklahoma Natural Gas Company (ONG), a division of ONEOK, received approval for rate adjustments from the Oklahoma Corporation Commission.
  • 2The approved plan allows ONG to recover an additional $17.65 million in annual revenue.
  • 3The rate increase is designed to recover costs related to service line investments, cathodic protection, uncollectible revenues, and gas in storage.
  • 4The new rates are authorized to be in effect for a maximum of 18 months.
  • 5A portion of the additional revenues is classified as interim and subject to refund pending a final determination in ONG's next general rate case.
  • 6The Commission also approved a modified distribution main extension policy and the deferral of future homeland-security costs.

Frequently Asked Questions

This 8-K filing announces that the Oklahoma Corporation Commission has approved a rate adjustment plan for ONEOK's division, Oklahoma Natural Gas Company (ONG). This plan allows ONG to increase its annual revenue by $17.65 million to recover certain costs not currently reflected in its rate structure.

ONG will be able to recover investments in service lines and cathodic protection, an increased level of uncollectible revenues, and a return on ONG's investment in gas in storage.

The approved rates are authorized to be in effect for a maximum of 18 months. Furthermore, a portion of the additional revenues is considered interim and subject to refund until a final determination is made in ONG's next general rate case.

Yes, in addition to the rate adjustments, the Commission also approved a modified distribution main extension policy and authorized ONG to defer future homeland-security costs as they are incurred.