The Oklahoma Corporation Commission (OCC) is deciding whether toorder interim rates, which could lead to a reduction for customersof Oklahoma Natural Gas (ONG), which would create what the LDCcalls “a rate case within a rate case.”

Oklahoma’s attorney general, OCC staff and others arerecommending interim rates take effect during an ongoing ONG ratecase. ONG contends the work required to develop interim rates wouldonly retard progress of the ongoing rate case, which also couldprovide savings to customers. The issue of whether interim ratesshould be considered is to go before two administrative law judgesfollowing testimony from OCC staff, ONG reply, and staff rebuttal.

The ONG rate case was opened last year when OCC staff saidconditions at the utility had changed since its last rate case,which ended in 1995, and a reexamination of rates was in order.Last month, ONG asked the commission for a rate reduction inconjunction with a proposal to sever some functions of the companyand make them deregulated. Attorney General Drew Edmondson andothers balked at that proposal. The AG said ONG “.seeks toimproperly expand and complicate this proceeding aimed at adjustingrates to Oklahoma consumers, while collaterally attacking theCommission’s rulings in the recently completed upstream unbundlingproceeding.”

ONG is currently challenging in state supreme court an OCC orderspecifying upstream unbundling of its system, saying, among otherthings, that it delves too deeply into management of the company.

Of interim rates, ONG spokesman Don Sherry said, “Fundamentally,we don’t think it’s necessary. We would be looking at a situationthat fundamentally would be a rate case within a rate case.” Oflast the company’s proposal last month to combine rate reductionswith upstream unbundling he said, “We think it is a reasonable andrational plan, and we would like to see it accomplished.”

Joe Fisher, Houston

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