Approval of PSO Rate Agreement Paves Way for Stronger, More Reliable Grid

On January 15th, 2025, the Oklahoma Corporation Commission issued a final order approving a settlement reached in Public Service Company of Oklahoma’s rate review late last year. This approval reflects no change to the interim rates implemented on October 23rd, 2024, in which the typical residential customer using 1,100 kilowatt-hours per month saw a $12 a month increase.

Overall, a typical residential customer’s monthly bill has gone down over the last year following a reduction of $16.93 starting in November 2024 due to lower fuel costs. This decision enables PSO to deliver on its commitment to provide safe, reliable, and affordable electricity for customers while modernizing and securing Oklahoma’s power grid.

Investing in Reliability and Efficiency

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 investment includes:

Our Commitment to Affordability and Transparency

PSO's last three rate adjustments since 2018 have consistently aligned with or stayed below inflation rates, demonstrating our commitment to keeping your costs manageable. Despite an 8% inflation spike, our latest adjustment was just a 2.5% increase, maintaining our prices as some of the most competitive in the region and well below the national average.

Thanks to lower fuel costs passed along to our customers, along with bringing more fuel-free energy online, PSO customers will continue to receive the lowest cost energy available.

Essential costs including recovery from the 2023 Father's Day storm and the needed upgrades to delay retirements of natural gas units are key to this plan.

1. Recovery from the 2023 Father's Day storm: Over a three-year period, we will address the damages caused by this historic storm, ensuring our infrastructure is resilient.

2. Upgrades to delay natural gas unit retirements: These upgrades are necessary to comply with mandates from the Southwest Power Pool, our regional electric grid authority. By doing so, we enhance grid reliability and meet regulatory requirements.

What's Next

The approved rate adjustment confirms the interim rate increase implemented in October 2024. The typical PSO residential customer using 1,100 kilowatt-hours per month saw a $12 a month increase. This necessary step ensures a strong power grid for PSO customers while providing a safe, reliable, and affordable electricity.

When did new rates take effect?

Interim rates were implemented on October 23rd, 2024 in which the typical residential customer using 1,100 kilowatt-hours per month saw a $12 a month increase. The approval in January reflects no change to those rates.

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.

What are "base rates"?

Base rates reflect the cost of delivering electricity to our customers, and inform the cost paid by 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).

How does PSO rates compare regionally and nationally?

As of December 31, 2023, prior to PSO's reduction of fuel costs, PSO's prices were competitive with the regional average and 13% below the national average. It's also helpful to know that PSO's past three rate changes have been at or below the national rate of inflation. View our rates.