OKLAHOMA CITY – Oklahoma Gas & Electric today announced that its Oklahoma customers will see a reduction in fuel costs beginning with January 2013 bills. The savings are the result of lower costs for the fuel used to generate electricity. The reduction should lower the average residential bill by about $6.00 a month.
“We’re pleased to pass along this savings to our customers,” said OG&E spokesman Brian Alford. “We are fortunate from an electricity perspective to be in an extended period of lower natural gas prices, which makes it possible to deliver these savings on monthly electric bills.”
Under regulatory rules, the company annually sets its fuel rates to recover from customers its projected fuel costs.
“Having a diverse mix of fuels is essential to managing costs,” Alford said. “Historically, natural gas has had the greatest price volatility when compared to coal and wind. As we look at the year ahead, we’re not seeing dramatic increases in natural gas prices, providing the opportunity to use more natural gas-fired generation in the near term.”
Alford added that under Oklahoma Corporation Commission rules, the company does not profit on the cost of fuel used for electric generation.
OG&E, a subsidiary of OGE Energy Corp. (NYSE: OGE), serves approximately 795,000 customers in a service territory spanning 30,000 square miles in Oklahoma and western Arkansas. OGE Energy also is the parent company of Enogex LLC, a natural gas pipeline business with principal operations in Oklahoma.