8-KOther EventsExhibits & Filings

ONEOK INC /NEW/ 8-K Report, Corporate Update (Dec 16, 2009)

Filed December 16, 2009For Securities:OKE

Summary

ONEOK Inc. (OKE) announced a significant regulatory development for its Oklahoma Natural Gas Company division. The division received approval for a rate change that will increase its base revenue by $54.5 million. This decision also establishes an authorized return on equity (ROE) of 10.5 percent for Oklahoma Natural Gas Company. While the gross revenue increase is $54.5 million, the company clarified that several charges previously billed separately to customers will now be incorporated into base rates. This reclassification results in a net increase to customers of approximately $26 million. Investors should note that these new rates are scheduled to appear on customer bills starting later in December 2009, indicating a near-term impact on the division's revenue.

Key Highlights

  • 1Oklahoma Natural Gas Company, a division of ONEOK, received approval for a rate change.
  • 2The approved rate change is expected to increase base revenue by $54.5 million.
  • 3The authorized return on equity for Oklahoma Natural Gas Company has been set at 10.5 percent.
  • 4Certain customer charges will be moved into base rates, reducing the net impact.
  • 5The net increase in customer charges is approximately $26 million.
  • 6New rates will be effective on customer bills beginning in December 2009.

Frequently Asked Questions

The approved rate change will increase Oklahoma Natural Gas Company's base revenue by $54.5 million and sets its authorized return on equity at 10.5 percent.

While the base revenue increase is $54.5 million, several separate line-item charges will be moved into base rates. This results in a net increase to customers of approximately $26 million.

The new rates will be reflected in customers' bills beginning later in December 2009.

The authorized ROE of 10.5 percent indicates the rate of return that regulators have deemed acceptable for the company to earn on its equity investments in Oklahoma Natural Gas Company. It is a key metric for investors in regulated utilities, signaling profitability within approved parameters.