Wrangling over two Oklahoma Natural Gas Co. (ONG) rate cases andunbundling of the ONG system continues in Oklahoma. OklahomaCorporation Commission Chairman Ed Apple last week voted against astipulated agreement between the commission and ONG. The agreement,which was killed in a 2-to-1 vote, had previously been appealed byOklahoma Attorney General Drew Edmondson. The AG maintained he wasdenied due process in negotiations between the commission and ONG.Edmondson also alleged ex parte communications took place betweenONG and Commissioner Denise Bode.

Apple said he was particularly disturbed by Edmondson’s appeal,which could have clouded the issue for months. Commissioner BobAnthony also voted against the agreement; Bode voted for it.

In her dissenting opinion, Bode called the last minute change “areal bottom-line loss to Oklahomans.” Bode said “moving forward torestructure the gas industry is a matter of profound importance toour state.”

The commission declared Edmondson’s motion to stay thestipulation pending appeal to be moot and denied it. A motion bythe AG to recuse was also denied. The commission further orderedthat the ONG causes be remanded to administrative law judges June23 to determine a procedural schedule.

The proposed stipulated agreement worked out between commissionutility staff and Oneok Inc., the parent of ONG and Kansas GasService Co. (KGS), was approved May 26 by a 2-1 vote of thecommission with Anthony the lone dissenting vote.

The agreement consolidated two ongoing rate cases and providedfor an interim rate reduction for Oklahoma customers of ONG andKansas Gas Service of $5 million/year beginning in September. Theattorney general maintained a larger rate reduction might be inorder. The agreement had set a procedural schedule for hearings,the topic of one of them being allocation of Oneok assets amongdistribution, transmission, storage, and gas gathering for thepurpose of unbundling.

Two rate reviews of ONG remain in effect. One was instigated bycommission staff and the other by an ONG application. ONG’s appealof the commission’s unbundling order from last summer also remainsin effect.

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