The Oklahoma Corporation Commission (OCC) Wednesday will resumea hearing on a negotiated settlement on rates, unbundling andcompetitive bidding between the commission and Oneok Inc. and itssubsidiaries Oklahoma Natural Gas (ONG) and Kansas Gas Service(KGS). The hearing began Friday.

In the meantime, Oklahoma Attorney General Drew Edmondson hasaccused OCC commissioners of having improper discussions with ONGand has asked each commissioner to recuse him/herself if suchdiscussions indeed happened. None of the three commissioners agreedto do so. Larry Lago, an aide to Commissioner Bob Anthony, said theOCC’s counsel advised commissioners meetings were not inappropriatebecause they took place in a legislative setting, not a judicialone in which they would be ex parte and not permitted.

The agreement consolidates two ongoing rate cases and providesfor an interim rate reduction for Oklahoma customers of ONG and KGSof $5 million on an annual basis effective with the first billingcycle in September. A final order establishing permanent rates isexpected next spring.

In addition to the rate reduction for Oklahoma customers and atimetable for the unbundling process, Oneok agreed to dismiss itsOklahoma Supreme Court appeal of the commission’s unbundling ordersand rules after orders in the consolidated rate case become final.The Oneok challenge to the commission order has been the hold-updelaying upstream unbundling.

Settlement terms call for new effective dates for ONG’scompetitive bidding for gas supplies and transmission servicebeginning Nov. 1, 1999 and November 1, 2000, respectively.

Also contained in the agreement are procedures and timetablesfor setting permanent rates and the identification and designationof Oneok assets for gas transmission, distribution, gathering andstorage and the process as outlined under OCC rules for obtainingthe deregulation of gathering and storage assets.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.