Summary
This 8-K filing from ONEOK, Inc. on May 3, 2006, reports that its Texas Gas Service division has received regulatory approval to implement new rates in two of its service territories, effective April 28, 2006. This rate adjustment is expected to increase annual revenues by approximately $2.5 million and will impact around 56,500 customers. Investors should note that this is a positive development as it directly impacts the revenue generation capabilities of a key operating segment. The approval includes an increase of $865,000 (4.2% of revenue) in the service area between Abilene and Fort Worth, with an approved return on equity of 10.85%. Additionally, a rate increase of $1.6 million (9% of revenue) was approved for the south Jefferson County service area, including Port Arthur, with a return on equity of 11%. The company also indicated a separate rate case is pending for the Rio Grande Valley service area.
Key Highlights
- 1ONEOK's Texas Gas Service division received approval for new rates affecting 56,500 customers.
- 2The approved rate changes are projected to increase annual revenues by $2.5 million.
- 3New rates became effective on April 28, 2006.
- 4One service area between Abilene and Fort Worth will see a 4.2% revenue increase ($865,000) with an 10.85% approved return on equity.
- 5South Jefferson County, including Port Arthur, will experience a 9% revenue increase ($1.6 million) with an 11% approved return on equity.
- 6A rate case is pending for the Rio Grande Valley service area.