FERC on April 19 conditionally accepted Oklahoma Gas and Electric’s (OG&E) proposed formula rate template revisions effective Jan. 1, 2024, as requested. The commission also directed OG&E to submit a compliance filing within 30 days of the order (ER24-722).
The commission found several errors and inconsistencies in OG&E’s proposed worksheets and formulas. It said the inclusion of populated plant balances, depreciation expense and revenue requirement for SPP allocation were not shown to be just and reasonable and ordered the company to remove the data in the compliance filing.
OG&E filed the revisions in December. It requested a waiver of the commission’s 60-day prior notice requirement so an effective date of Jan. 1, 2024, could be set. The company said allowing the proposed changes to take effect at the beginning of the rate year would avoid a midyear formula rate change and simplify the future calculation of the true-up adjustment.
Western Farmers Electric Cooperative, Arkansas Electric Cooperative Corp. and Oklahoma Municipal Power Authority, all OG&E customers, protested the filing. They argued the company did not provide sufficient information to back up its claim that the formula rate changes were “exclusively ministerial.”
FERC disagreed, finding the revisions are just and reasonable, pending OG&E’s compliance filing.
“We find that the revisions … are ministerial in nature and do not change the methodology by which the rate is calculated and will have no effect on rates,” the commission said. It noted the revisions will make the formula rate template easier for interested parties to review during the annual update process.
