Public Service Company of Oklahoma (PSO), based in Tulsa, Oklahoma, has taken steps to ensure a safe, secure and reliable electric grid now and in the future under a more efficient regulatory framework. Additionally, the company is lowering charges to customers for purchased power and fuel used in power generation.
The Grid Modernization and Efficiency Plan is a comprehensive plan to meet customers’ increasing needs for enhanced reliability, convenience and integration of technology while mitigating potentially large price increases. The plan includes upgrades to aging infrastructure, to invest in and accommodate new technology and analytics to keep the grid safe and secure.
PSO’s Grid Modernization and Efficiency Plan, filed last month with the Oklahoma Corporation Commission (OCC) is needed for PSO to replace and upgrade aging electric infrastructure, while investing in new technology to maintain and improve reliability and efficiency.
A key element of the plan is the adoption of performance-based rates (PBR). PSO’s proposed PBR ties the company’s financial condition to its ability to meet a set of customer-focused performance standards, called performance incentive measures (PIMS).
“Customers benefit from our financial condition being tied to the achievement of certain levels of reliability, safety and customer satisfaction. They also benefit from reduced price volatility since rates would be gradually adjusted as costs go up or down,” said Emily Shuart, PSO Director, Regulatory Services. “PSO remains committed to providing our customers with safe, reliable, and affordable service and our proposal holds us accountable for accomplishing that.”
The filing includes a request to adjust PSO’s rates to recover increased costs related to aging infrastructure, storms, taxes and other necessary business expenses. For a typical residential customer, the requested increase amounts to approximately $7 per month. The overall rate increase request is $88 million.