PSO Announces Small Bill Decrease; Lower fuel costs to offset interim rate increase for funding automated metering project.

TULSA, Okla., Oct. 27, 2014 – Public Service Company of Oklahoma (PSO) today announced it is taking actions that will result in a slight net bill decrease for all customers, and at the same time, allow the Company to continue moving forward with its plan to deploy Automated Metering Infrastructure (AMI) across its service area by the end of 2016.

Beginning with the first billing cycle of November 2014, PSO will lower its fuel charge by approximately $50 million, reflecting a decline in forecasted natural gas prices.  At the same time, the company will implement interim rates, subject to refund, for the AMI portion of its pending rate case settlement.

Although installation of the new AMI technology initially costs $3.11 per month for a residential customer, the decrease in fuel will more than offset that cost, resulting in a net bill decrease of slightly more than one percent.

PSO annually adjusts the fuel cost passed on to customers each November to reflect increases or decreases in what the company spends on fuel used in generating electricity.  Customers pay only for the cost of fuel used to provide the energy they consume.  PSO does not profit from the amount customers pay for fuel.

State law allows utilities to implement changes proposed in a rate case subject to refund if no decision has been made by the Oklahoma Corporation Commission (OCC) within 180 days of the filing, which was reached in July.  However, PSO had previously announced that it would delay implementation of interim rates until fall to lessen the impact on customers.

Since filing the proposal, PSO has invested millions of dollars in the new AMI technology and believes it is appropriate to implement that portion of the settlement agreement pending final approval.

“The company continues to invest in this project to give customers the energy savings tools and service quality they expect from their utility, and we need to continue that investment to stay on track,” said PSO’s Emily Shuart, Director of Regulatory Services.  “Implementing cost recovery on an interim basis at a time when fuel costs are decreasing allows us to cover our costs but also mitigates the impact on our customers.”

PSO announced in November 2013 plans to spend $130 million to begin full deployment of AMI across its 30,000 square-mile service territory.  PSO’s goal is to replace more than 520,000 existing electric meters with new AMI meters by the fourth quarter of 2016.

The potential energy savings for customers through AMI can offset the cost of the new meters, while providing additional benefits to all customers.  Those benefits include:

  • Web accessible account and energy usage information.
  • Enhanced energy management.
  • Improved outage restoration.
  • Enhanced customer service.

MEDIA CONTACTS:                                                        

Stan Whiteford                                                         

(918) 599-2574                    


Tiffini Kelley

(918) 599-2052



PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving nearly 540,000 customers in eastern and southwestern Oklahoma.  Based in Tulsa, PSO has 4,274 megawatts of generating capacity and is one of the largest distributors of wind energy in the state.  News releases and other information about PSO can be found on the World Wide Web at PSOklahoma.com.


American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5.3 million customers in 11 states.  AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S.  AEP also owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.  AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission systems that covers much of Texas.  AEP’s utility nits operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas).  AEP’s headquarters are in Columbus, Ohio.






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Privacy Policy for Public Service Company of Oklahoma (PSO), a unit of American Electric Power (AEP)


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PSO uses Flurry Analytics Service (provided by Yahoo) in order to improve its mobile apps. Flurry’s privacy policy governs the use of this information.

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This policy was last revised on December 13, 2017.

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