Summary
ONEOK, Inc. (OKE) has filed an 8-K report detailing a significant event concerning its division, Oklahoma Natural Gas Company (ONG). On January 28, 2005, ONG formally requested a rate review from the Oklahoma Corporation Commission (OCC). This request stems from substantial investments and increased operating costs associated with ONG's natural gas distribution system, which serves over 814,000 customers across Oklahoma. The primary objective of this filing is to inform investors about ONG's petition to adjust its base rates. The company is seeking authorization to increase annual revenues by approximately $99.4 million. A notable portion of this increase, around $38.5 million, is attributed to anticipated additional income taxes, with the remaining $60.9 million intended to cover increased investments and operating expenses. This marks ONG's first base rate increase request since 1995, with the last OCC review concluding in 2000.
Key Highlights
- 1Oklahoma Natural Gas Company (ONG), a division of ONEOK, Inc., has filed for a rate review with the Oklahoma Corporation Commission (OCC).
- 2ONG is seeking to increase its annual revenues by approximately $99.4 million.
- 3The proposed rate increase is intended to cover substantial additional investments and operating costs within ONG's natural gas distribution system.
- 4Of the requested revenue increase, $38.5 million is earmarked for additional income taxes.
- 5The remaining $60.9 million from the revenue increase will be applied to cover increased investments and expenses.
- 6This is ONG's first request for a base rate increase since 1995.
- 7The last OCC rate review for ONG concluded in 2000.