Summary
This 8-K filing from ONEOK, Inc. announces a significant development regarding rate implementation for its subsidiary, Oklahoma Natural Gas Company (ONG). Beginning July 28, 2005, ONG will implement new rates for its approximately 820,000 customers. This action is taken in accordance with Oklahoma statutes that permit utilities to enact new rates after a 180-day period if no final order has been issued by the Oklahoma Corporation Commission (OCC). The rate increase is a result of ONG's January 2005 filing seeking $99.4 million in additional annual revenues. However, the OCC's administrative law judge recommended an increase of approximately $58 million. Both ONG and the Oklahoma Attorney General are appealing this recommendation, with the OCC Commissioners scheduled to hear these appeals on August 1, 2005. Investors should monitor the outcome of these appeals as they will determine the final revenue impact.
Key Highlights
- 1Oklahoma Natural Gas Company (ONG) will implement new customer rates effective July 28, 2005.
- 2This rate change affects approximately 820,000 ONG customers.
- 3The implementation is allowed under Oklahoma statute after a 180-day review period without a final OCC order.
- 4ONG initially sought $99.4 million in additional annual revenues.
- 5An administrative law judge recommended a lower increase of approximately $58 million in annual revenues.
- 6Both ONG and the Oklahoma Attorney General are appealing the administrative law judge's recommendation.
- 7The Oklahoma Corporation Commission is scheduled to hear these appeals on August 1, 2005.