Oklahoma Corporation Commission (OCC) staff, ONEOK Inc. and itssubsidiaries Oklahoma Natural Gas (ONG) and Kansas Gas Service(KGS) reached negotiated settlement of a number of interim issueson rates, unbundling of assets and competitive bidding for gasservices. The stipulated agreement must still be approved by OCCcommissioners. Once that happens, it will hasten wholesale and thenretail unbundling in the state.

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.

Joe Fisher, Houston

©Copyright 1999 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.