An administrative law judge at the Oklahoma Corporation Commission last week found Oneok and two of its subsidiaries, Oklahoma Energy Marketing and Trading and Oneok Gas Storage, in contempt for their refusal to provide documentation of their gas sales. The judge recommended to the commission that the companies be fined $2,000 per day retroactive to May 8 and lasting until they comply with the commission order.

Oneok and its subsidiaries claim the information is proprietary and that the commission has no legal right to have access to its unregulated gas sales transactions. The matter is expected to go before the full commission later this month.

OCC Public Utility Division Director Ernest Johnson called the companies continued refusal to allow access to the documents “mystifying.”

“They have twice tried unsuccessfully to have the Oklahoma Supreme Court stop staff in its attempt to get the documents. Now they have simply refused to turn over the documents. A paid witness for Oneok recently testified that the dealings between Oneok subsidiaries and ONG were arms-length competitive transactions, and the resulting charges were fair, just, and reasonable. One would think Oneok would be anxious to show staff that such was actually the case, and that the decisions made were in the best interest of the consumer,” said Johnson.

“This is simply a case of commission staff trying to get the information needed to ascertain whether the customers of a regulated monopoly (ONG) paid a fair, just and reasonable price for their natural gas this past winter.”

John said the commission staff received numerous complaints from gas customers struggling with high gas bills this past winter. They best illustrate the reason behind the staff’s request for documents from companies owned by Oneok, the parent company of ONG, he said in an earlier statement.

“It is the Commission’s responsibility and obligation to review and determine whether ONG’s customers are paying no more for gas than the law allows. Staff is simply trying to do that. It is regrettable Oneok apparently does not see fit to work cooperatively with OCC staff to strengthen the public’s confidence in the utility and the regulatory process. Its refusal to turn over data related to gas transactions of its subsidiaries further undermines a public confidence already badly shaken by the gas crisis.”

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.