Public Service Company of Oklahoma (PSO), a unit of American Electric Power (NYSE: AEP), is implementing interim rates for residential customers pending a final order in its rate case at the Oklahoma Corporation Commission (OCC).  The interim rates amount to an increase of approximately $8.6 million, which will implement a key provision of the rate case on which there seems to be agreement at the OCC.  Specifically, the interim rates will increase the basic service charge for residential customers, which recognize some of the increased costs of providing service to those customers.  Other components of the rate case will be implemented once the OCC issues a final order.
 
 Effects on other customer class rates are expected to be relatively modest and rate adjustments for those customer classes also will be made after a final order is issued and new rates are determined.
 
Under Oklahoma law, an OCC-regulated utility can implement interim rates after a certain time if a Commission order is still pending.  At this point it is not known when the OCC will issue a final order.
 
For a residential customer using 1,000 kWh per month, the interim increase will amount to approximately $1.67 per month.  Customers would receive refunds if the interim rates are higher than those eventually set in the OCC’s final order.
 
“While we believe the Commission will approve an amount higher than the interim increase, our action today implements a key issue on which there appears to be agreement by the Commissioners,” said Stuart Solomon, PSO president and chief operating officer.  “It will be critically important for PSO to receive a positive final order so that we can cover our basic costs and ensure that we can continue to provide service and make future investments for our customers.”
 
PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving approximately 520,000 customers in eastern and southwestern Oklahoma.  Based in Tulsa, PSO has more than 4,000 megawatts of generating capacity, and is the largest provider of wind energy in the state.  News releases and other information about PSO can be found on the World Wide Web at PSOklahoma.com.