UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) | June 29, 2016 | |
OKLAHOMA GAS AND ELECTRIC COMPANY | ||
(Exact Name of Registrant as Specified in Its Charter) | ||
Oklahoma | ||
(State or Other Jurisdiction of Incorporation) | ||
1-1097 | 73-0382390 | |
(Commission File Number) | (IRS Employer Identification No.) | |
321 North Harvey, P.O. Box 321, Oklahoma City, Oklahoma | 73101-0321 | |
(Address of Principal Executive Offices) | (Zip Code) | |
405-553-3000 | ||
(Registrant's Telephone Number, Including Area Code) | ||
(Former Name or Former Address, if Changed Since Last Report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
* Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
* Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
* Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
* Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 8.01. Other Events
As previously reported, on December 18, 2015, OG&E filed an application with the Oklahoma Corporation Commission ("OCC") requesting an annual rate increase of $92.5 million to begin recovering $1.6 billion of electrical infrastructure additions since OG&E's last general rate in 2012. The hearing on the merits for OG&E's rate case application was heard by an administrative law judge ("ALJ") and concluded in May 2016. While there is no statutory deadline for the ALJ to make a recommendation or for the OCC to issue a final order, OG&E is allowed to implement interim rates 180 days after the filing of its application with the OCC.
On June 29, 2016, OG&E announced it will implement an annual interim rate increase of $69.5 million, effective July 1, 2016, and simultaneously reduce the amount it collects from customers for fuel costs. The interim rates are subject to refund of any amount recovered in excess of the rates ultimately approved by the OCC in the rate case.
OG&E cannot predict when the ALJ or OCC will act upon the rate case. The related press release is furnished as Exhibit 99.01 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits | ||
Exhibit Number | Description | |
99.01 | Press release dated June 29, 2016 announcing OG&E's implementation of interim rates and reduced fuel costs. | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
OKLAHOMA GAS AND ELECTRIC COMPANY | |
(Registrant) | |
By: | /s/ Scott Forbes |
Scott Forbes | |
Controller and Chief Accounting Officer | |
July 5, 2016
Exhibit 99.01
OG&E implements interim rates, lowers fuel costs
OKLAHOMA CITY - Oklahoma Gas and Electric Company (OG&E) announced two actions today that, together, will result in lower electric bills for customers. Beginning Friday, the company will implement an interim $69.5 million annual rate increase but will simultaneously reduce the amount it collects from customers for fuel costs, resulting in a net bill reduction of $7.73 per month for the average residential customer compared to last summer.
OG&E filed for a $92.5 million rate increase in December 2015 to, among other things, begin recovering more than $1.6 billion invested in the electric system since the last rate case in 2012. A hearing in the case concluded in May and the company awaits a final order. In the meantime, state law allows utility companies to implement interim rates 180 days after a case is filed. Those rates, however, are subject to refund when the commission issues its final order.
The fuel cost reduction is a result of the continued decrease in the cost of natural gas that OG&E uses to generate electricity. Those costs are passed directly to the customer without markup and are adjusted regularly to prevent continued over or under-recovery. In addition to this reduction, OG&E reduced its fuel cost collections in January of this year and September 2015. OG&E is among the largest consumers of natural gas in the state.
“While we await a final order in our rate case we are implementing the interim rates to help cover the costs of operating the utility while we are, at the same time, able to offset the impact to customers’ overall bills through a fuel cost reduction,” said OG&E spokesman Randy Swanson.
Oklahoma Gas & Electric Company is a subsidiary of OGE Energy Corp. (NYSE: OGE) and is the largest electric utility in Oklahoma. A regulated utility, OG&E serves approximately 828,000 customers across a 30,000-square mile service area in Oklahoma and western Arkansas. For more information, visit www.oge.com, find us on Facebook at www.facebook.com/ogepower, and follow us on Twitter at www.twitter.com/ogande.