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.