ONEOK utility subsidiary Oklahoma Natural Gas Co. (ONG) filed a $99.4 million annual revenue increase Friday with the Oklahoma Corporation Commission. ONG said the increase, which would be about $10/month for the average residential customer, would cover additional investments in its distribution system, higher operational costs and taxes.

The company, which serves more than 814,000 Oklahomans, said $38.5 million of the total would be paid in additional income taxes, with the majority of the remaining $60.9 million to be applied against ONG’s increased investment and expenses. ONG has not had an increase in its base rates since 1995.

“Over the past ten years, we have continued to invest in pipelines and in the supporting systems and technology necessary to make this service dependable and reliable,” said ONG President Sam Combs.

ONG told regulators that since 2000, its investment in rate base has increased by more than $190 million. The company’s non-gas operating expenses have increased by $50 million. “These and other changes have created substantial costs that were not addressed in the last rate proceeding,” the company said in its filing. “As a result, Oklahoma Natural is currently earning less than a reasonable return on the value of plant, property and other assets devoted to public utility service.”

The company’s application also proposes certain changes in the charges or credits that appear on customers’ bills related to certain authorized business expenses, changes in customer deposit policies, and the adoption of a new average pay plan.

ONG’s rate filing also proposes a new residential rate structure with two options to allow customers to better manage their energy bills. Customers who use higher than average amounts of natural gas may choose a rate plan with a higher monthly service charge but lower per unit delivery fees; those who typically consume lesser amounts of natural gas will have the option of a lower monthly service charge and higher per unit delivery charges.

“We believe this request is balanced and offers our customers an even greater measure of choice and control over their gas bills,” Combs said. “It also permits us to continue to make the level of investment in our system and in new technology that will continue to improve customer service, reliability and safety for our customers.”

Regulators have 180 days to review the application and issue an order. Any approved increase would not take effect until late next summer.

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