PSO's Grid Security, Transformation and Efficiency Plan (STEP)

Benefits for You

It's all about keeping the power flowing to homes and businesses across Oklahoma and improving your service. The electric grid is the most complex and universally relied on machine ever built. Technological innovation, security and resiliency are core components of this backbone that powers 232 cities and towns in Oklahoma.

This approval reflects the thorough review and constructive work of the Corporation Commission and all the parties involved in the case. This will seek to recover $50.7 million in new grid investments, some of which are already in service but were not part of the current base rates, based on 2018 expenses.

The company�s grid Security, Transformation and Efficiency Plan (STEP) is designed to:

1. Strengthen and secure the electric grid, resulting in fewer and shorter power outages;
2. Result in cleaner air and greater use of efficient and environmentally friendly power sources like low-cost natural gas and Oklahoma wind energy and,
3. Give customers more control over how they use energy through new programs and service options by integrating new technology.

STEP Forward at a Glance

PSO's current prices are based on 2018 expenses, and costs have gone up significantly over the past two+ years. Fuel cost adjustments, reflecting the natural gas prices, have changed but rates have stayed the same.

We last filed for a base rate case in 2018. This review process is regulated or driven by the Oklahoma Corporation Commission and examines the costs for the system that delivers power to you - from the electric poles and wires to the substations and associated maintenance.

As part of the STEP forward process, we've evaluated customer needs, technological advancements in the utility space and more. As you might expect, we've identified a number of opportunities for us to continue to provide added value and improved service for our customers, while securing and strengthening the grid.

What's Next

Beginning in February 2022 at the earliest, the monthly bill of a residential customer who uses 1,100 kWh/month would increase $5.07 or less than 5 PSO�s current prices are based on 2018 expenses and even with this adjustment, rates will remain at or below state, regional and national averages.

Frequently Asked Questions

Why is PSO trying to increase rates while the economy is still recovering from the COVID-19 pandemic?

In a 2019 agreement between PSO and several others, we committed to filing a case to update the base rates for providing electric service no earlier than October 2020 and no later than October 2021. This is the midpoint of that timeframe.

When will the new rates take effect?

Customers will see the new base rates reflected on their bills no sooner that February, pending final implementation approval of from the corporation commission's public utility division. However, the new base rates are consistent with interim rates already in effect.

As a PSO customer, how will I benefit from what you're proposing?

You will have more reliable service and more control over how you use energy. We will continue to secure and transform the electric grid, meet federal environmental requirements, and efficiently and reliably service customers. The efficiency savings helps keep your energy costs down and the technology also helps us restore outages faster when they happen.

Why is PSO filing a rate case with the Oklahoma Corporation Commission (OCC)?

Before changing prices, PSO is legally required to demonstrate that all costs and investments are reasonable and necessary, and that pricing structures are fair to all customers.

Rate cases are standard practice for public utilities in the United States where utilities commissions review operations information and financial data. In Oklahoma, the OCC reviews this information and determines a reasonable base rate for PSO customers.

All aspects of PSO's pricing and service are subject to regulatory approval.

Does this include the costs associated with February's winter storm Uri?

No. This is being addressed through a separate filing at the Oklahoma Corporation Commission.

What are "base rates"?

Base rates reflect the cost of delivering electricity to our customers. These costs pay for the generation, transmission and distribution system - the power plants, substations, poles and wires you see in your community - along with all of the costs it takes to keep this system running. These costs also include reading meters, producing bills and customer service activities.

Are "base rates" and "fuel cost adjustments" the same thing?

No. Fuel cost adjustments are simply the costs related to our fuel sources (example: natural gas and coal) that PSO pays to power its generating stations and serve customer load requirements. Because fuel costs vary from predicted costs, the factor must be adjusted - up or down - to ensure customers pay only the fuel costs that PSO actually incurs - no more or less. Fuel cost adjustments are also reviewed and approved by the Oklahoma Corporation Commission (OCC).

Will my rates change?

Beginning in February 2022 at the earliest, the monthly bill of a residential customer who uses 1,100 kWh/month would increase $5.07 or less than 5%. PSO�s current prices are based on 2018 expenses and even with this adjustment, rates will remain at or below state, regional and national averages.

How does PSO rates compare regionally and nationally?

PSO�s base rates are based on 2018 expenses and even with this adjustment of less than 5%, rates will remain at or below state, regional and national averages.