The Oklahoma Corporation Commission (OCC) has delayed the startdate for retail gas unbundling in the state from Oct. 1, 1999 toJune 1, 2001. Retail unbundling affects gas utilities serving morethan 25,000 customers. The commission order delaying unbundlingalso allows groups wanting to propose competitive purchase programsat earlier dates to submit their proposals for commissionconsideration.

OCC Chairman Ed Apple said he agrees with hearing testimony thatsignificant tax and municipal franchise issues should be addressedprior to restructuring the gas service industry. “I think theseissues could take two years or more to resolve. We would bepremature in setting this year (1999) as a target date for startingretail competition.”

Commissioner Bob Anthony said forced delays in implementing gasindustry restructuring at the wholesale level caused the change instarting time for retail competition.

The commission revised its gas rules in 1998 to begin separatingintegrated gas systems into individual services at the wholesalelevel. Oklahoma Natural Gas Co. (ONG) appealed several issues tothe Oklahoma Supreme Court, staying the effectiveness of the order.The Supreme Court has not ruled on the appeal.

“Oklahoma Natural Gas has caused this delay. We are alsodisappointed that the Supreme Court did not dismiss the ONG appealof an interim order which would have benefited consumers duringlast year’s heating season,” Anthony said.

“I want consumers to have a choice about who provides theirnatural gas as soon as possible, but wholesale competition mustcome first. More importantly, consumers need to have time toprepare for the coming change. This revised schedule takes thatinto account,” said Commissioner Denise Bode.

Anthony said most of the savings will occur from upstreamrestructuring and competitive bidding for gas procurement. “Thesesavings have to be in place before they can be passed through tothe retail customers.”

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