Oklahoma AG slashes PSO rate hike from 15% to 1%, cutting $25 monthly jump to $2.45

Oklahoma utility customers may be facing a much smaller bill increase than many initially feared.

A proposed rate hike from Public Service Company of Oklahoma (PSO) that could have added at least $25 per month for the average residential customer has been reduced to $2.45 under a new settlement announced by Oklahoma Attorney General Gentner Drummond.

What happened?

After the PSO sought a sizable rate change earlier this year, Drummond said his office reached a settlement with the utility. 

As KOKH reported, when the company submitted its request in January, it said it needed additional revenue for electric system investments and to handle increasing power demand across the state.

Under PSO's filing, the average residential customer would have paid about 15% more, or close to $300 annually. Drummond said the settlement would lower that to a 1% increase.

The Oklahoma Corporation Commission still needs to officially approve the deal.

Why does it matter?

For households already dealing with high prices, the difference between a $25 increase and a $2.45 increase is significant. Utility bills are among the most unavoidable monthly expenses, so even modest changes can have an immediate effect on family budgets.

The situation also reflects a broader tension playing out in many places, particularly as energy-intensive industries try to move into town: Utilities argue they need to invest in infrastructure and prepare for rising electricity demand, while customers and regulators push to keep those costs from falling too heavily on residents and businesses.

When rate hikes are scaled back, it can help people keep more money for essentials such as food, housing, transportation, and health care. It can also give business owners more predictability at a time when operating costs remain a major concern.

What happens next?

The Oklahoma Corporation Commission needs to approve the deal before it can take effect.

"This is a major win for Oklahoma families, businesses and ratepayers," Drummond said in his announcement. "With inflation through the roof, consumers are already paying too much for goods and services. My office will continue fighting to ensure utility customers receive safe, reliable service at rates that are fair, just and reasonable." 

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