Tulsa-area PSO customers already paying higher electric bills could see a much smaller permanent increase than originally feared, if the Oklahoma Corporation Commission approves a settlement negotiated by Attorney General Gentner Drummond's office.
Public Service Company of Oklahoma asked in January to raise residential rates by about 15%, which would have added more than $25 a month to the average customer's bill. The settlement announced June 30 would cut that to roughly 1%, or about $2.45 a month. In dollar terms, PSO's requested $299 million annual base revenue increase would drop to $73 million, a 75.6% reduction.
Drummond called the compromise a major win for Oklahoma families, businesses and ratepayers.
The commission has not yet approved the deal. An Administrative Law Judge is reviewing PSO's proposed orders and is expected to issue a recommendation by Friday, Aug. 21, according to a PSO statement to News On 6. After that, commissioners will consider exceptions before issuing a final order, which PSO's parent company, American Electric Power, expects sometime this fall.
Interim rates already on your bill
PSO began collecting an interim rate increase on July 1 while the commission deliberates. That increase is subject to refund if the commission ultimately determines PSO was entitled to less, Fairo Mitchell, director of the OCC's Public Utility Division, said at a Aug. 13 town hall in Tulsa.
Not everyone supports the settlement. AARP, which represents residential ratepayers at the state Capitol, has raised objections. Joy McGill, AARP's state director of advocacy, told the same town hall audience that the original $25 average base increase "was absolutely unacceptable" from AARP's perspective.
Town hall draws frustrated residents
Rep. Meloyde Blancett, D-Tulsa, hosted the Aug. 13, event at the Bronson Brookside Library after hearing from constituents alarmed by their summer bills. Blancett said she called more than 500 constituents while running for reelection, and a significant share raised concerns about electricity rates.
"What the hell is going on with electricity rates?" Blancett said constituents kept asking her. "That was the impetus for doing this. This is not a campaign event — this is about good governance."
Tulsa resident Ellen Lannert told panelists at the Aug. 13 event, as reported by the Tulsa Flyer on Aug. 14: "This is incredibly frustrating for retirees. We do the average, we do everything we can, we do the Power Hours, we keep the temperature at 79. We are beyond knowing what to do."
What's driving bills higher
Beyond PSO's rate case, panelists pointed to rising regional transmission costs from the Southwest Power Pool, which manages the grid across Oklahoma and parts of 16 other states. SPP's latest $8.6 billion transmission investment plan cites extreme-weather resilience as a key driver. Summer air-conditioning demand and investment in aging grid infrastructure also push bills up, according to Public Radio Tulsa's coverage of the event.
New law shields residents from data center costs
House Bill 2992, the Data Center Consumer Ratepayer Protection Act, took effect July 1 with unanimous legislative support. The law requires data centers, cryptocurrency mines and AI facilities to cover their own infrastructure costs rather than pass them to residential and small-business customers.
Rep. Brad Boles, R-Marlow, who authored the bill, said at the town hall that data center companies did not fight the measure. Oklahoma still has the third-lowest residential utility rates in the country, Boles noted.
What's next
The ALJ recommendation is due by Aug. 21. No specific public comment deadline or next OCC hearing date has been announced. Customers who overpaid under the interim rate will receive a refund once the commission issues its final order.
