In a September 30 filing with the Oklahoma Corporation Commission, the utility asked for a rate review and authority for a $395 million rate hike which if approved, would result in a total bill increase of 14% over rates last set in July of 2024 or a $23.88 hike for the average residential customer.
OG&E said it asked for the review to support reliability projects made since March 2024 to strengthen generation, transmission, and distribution systems across the company’s 30,000-square-mile service area.
“Applicant is not earning sufficient operating income to produce a fair and reasonable return on capital or a fair and reasonable return on the value of its plant, property and other assets dedicated to public utility service within the State of Oklahoma. Applicant must have increased rates and consequent additional revenues if Applicant is to continue to provide adequate and reliable electric service and earn a fair, just and reasonable rate of return on its investment,” stated the utility in its application filed Sept. 30.
Kimber Shoop, Director of Regulatory Affairs for OG&E testified, “The average residential customer will see an increase in their bills of $23.88 per month when compared to current rates. For residential customers, this represents about a 17.5 percent increase in the monthly bill.”
The rate review requests approval for reliability work and system upgrades made since March 2024, addressing rising costs, meeting new federal reliability requirements, and keeping up with Oklahoma’s growing population. It does not include increased electricity use from data centers.
Over the last three years, system reliability has improved every year with 2025 at 99.96%, outpacing the national average. Strengthening the grid for customers is no longer possible at current rates set three years ago.
Any price change may be difficult for some customers, which is why OG&E is actively working to keep customer bills as low as possible as we continue to build and operate a reliable electric grid. In this filing, OG&E has proposed:
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Expanding OG&E’s Senior Discount: $85/year senior discount will be available to all customers ages 65 and over, not just SmartHours customers
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Expanding OG&E’s Low Income Assistance Program (LIAP): $13/month discount to more income-qualified customers
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Arrearage Management Pilot Program: test a new potential program to help customers stay connected and forgive a portion of past-due balances
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Choose My Due Date: Allows customers to select a bill due date that better aligns with their income, benefits, or lifestyle—providing added flexibility for seniors on Social Security and customers managing monthly budgets
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Pre-Pay: A new, deposit-free payment option that gives customers more flexibility in managing their bills
Also included in the rate review are the new generating units at Horseshoe Lake, which were completed early and $12 million under budget. Bringing the units on-line early allowed OG&E to avoid between $9 and $16 million in 2026-2027 winter capacity purchases.
OG&E’s request in this review totals $395 million, which would equate to a $23.88 increase for the average residential customer. Rates do not change today – the filing begins a multi-month legal process, with new rates anticipated to take effect in six months.
