ONG to lower gas utility rates

Oklahoma Natural Gas Corp. (ONG), Oklahoma City, said its customers will pay less for gas utility services under terms of an order approved Tuesday by the Oklahoma Corporation Commission. ONG says it will be able to better position itself for a more competitive energy marketplace through the agreement, which was negotiated between ONG, the Commission staff, and the Oklahoma Attorney General's office.


Oklahoma Natural Gas Corp. (ONG), Oklahoma City, said its customers will pay less for gas utility services under terms of an order approved Tuesday by the Oklahoma Corporation Commission. ONG says it will be able to better position itself for a more competitive energy marketplace through the agreement, which was negotiated between ONG, the Commission staff, and the Oklahoma Attorney General's office.

The agreement also will lower rates and is expected to reduce annual costs to consumers by around $20 million. A significant part of that reduction is the change in how ONG obtains upstream services, including gas transportation and storage. The transmission lines and gas storage formerly owned by ONG have been separated from the utility and are now operating in competitive markets.

The plan allows ONG to serve its customers with more flexibility, and the decreases in base rates will offset the rising price for natural gas, which is now benefiting Oklahoma producers and Oklahoma schools, says Ed Farrell, president of ONG. ONG will use a competitive bidding process to buy transportation services as well as for gas supply.

Residential customers, on average, can expect to save $23/year for delivery and service.

The agreement also calls for ONG to become the gas utility for 35,000 residents in northeastern Oklahoma now being served by Kansas Gas Service. These customers should see their rates go down by $85/year.

ONG also will assume responsibility for the maintenance and safety of the service lines that connect customers' homes and businesses to ONG's distribution mains. Meters may now be installed at the building wall, and customers can be relieved of the unexpected cost for service line failures.

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