OG&E Proposes $17.7 Million Rate Increase in Arkansas

OKLAHOMA CITY, Sept. 28 /PRNewswire-FirstCall/ -- OG&E today filed an application asking the Arkansas Public Service Commission to approve a rate increase of $17.7 million that will enable the company to recover the cost of significant electric system expansions and upgrades that have been completed since the last rate filing two years ago.

A general rate increase of $13.3 million was granted in 2009, but because a fuel charge refund was also reflected on customers' electric bills, most saw little change. OG&E's Arkansas electricity costs are among the lowest in the U.S.

"We've been pleased to deliver service to our Arkansas customers at some of the lowest prices in the U.S.," said Howard Motley, vice president of Regulatory Affairs for OG&E. "This rate application reflects the significant additional investments we've made in the reliability of our system and to deliver opportunities for renewable energy and other products and services to our customers. Even with the proposed increase, Arkansas rates will remain among the lowest in the nation."

Motley added that the requested increase would help OG&E recover investments in electric infrastructure including high-voltage transmission lines and wind energy, as well as rising operating costs. "The investments we're making now help us save customers money by achieving our goal to reach the year 2020 without adding fossil-fueled electric generation," Motley said, "The 2020 goal includes implementing demand management, energy efficiency programs and smart grid technology, all of which are designed to reduce peak demand and delay the need for the next power plant, providing significant savings for customers."

New rates, if approved, would go into effect in the third quarter of 2011.  The company estimates the new rates would cause the average OG&E Arkansas residential electric bill to increase by about $6.61 per month.

OG&E, a subsidiary of Oklahoma City-based OGE Energy Corp. (NYSE: OGE), serves more than 780,000 electric customers in a service area spanning 30,000 square miles, including about 65,000 customers in western Arkansas. OGE Energy also is the parent company of Enogex LLC, a midstream natural gas pipeline business with principal operations in Oklahoma.

SOURCE OGE Energy Corp.