MuskogeePhoenix.com, Muskogee, OK

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Discussion

November 4, 2009

THE PEOPLE SPEAK: Let’s hear better explanation for hike

On Nov. 9, the Oklahoma Corporation Commission is scheduled to begin hearings on an Oklahoma Natural Gas request for a rate increase.

According to a pamphlet mailed by ONG to its customers, which I just received, ONG is requesting an increase of $66 million in base rates inclusive of $25.5 million of federal and state income taxes. ONG states the increase is necessary to recover increased business costs and natural gas infrastructure investments that the company has made since 2004. The proposed net increase of $37 million will raise an average residential customer’s bill by approximately $4.92 per month.

To my surprise, on Oct. 28 after receiving the notice, the Portland, Ore., Oregonian newspaper published the following headline on the first page of its business section,: “Northwest Natural Gas rates to shrink 16 percent overall, just in time for winter.”

The ensuing article goes on to say the price relief is due to a sluggish economy, overflowing storage facilities and gas prices have plummeted about 30 percent since Northwest set its rates last year.

Oregon’s Public Utility Commission has calculated a typical residential customer will see his monthly bill decline by 19 percent or $14.56.

In closing, I will admit that Oregon isn’t Oklahoma and there are probably many variables which make comparisons impossible, but you cannot tell me that a 30 percent drop in the price of natural gas has not significantly reduced ONG’s price and cost structures.

Donald E. Barton

Muskogee

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