Public Service Company of Oklahoma
PSO Files New Fuel Factors

May 15, 2017

Beginning with May billing, Public Service Company of Oklahoma (PSO) is adjusting its fuel factor to reflect higher prices for natural gas and power.

The fuel factor, which appears in a shaded box on the left side of customer bills, is based primarily on future, predicted fuel and power costs. Because actual fuel costs will always vary from predicted costs, periodic adjustments to the fuel factor are necessary.

However, customers only pay the actual costs incurred from electricity purchases and fuel used to generate electricity for customers - no more or less. The company is prohibited by law from making a profit on these costs.

Because the actual costs were higher than predicted over the last six months, customers have been paying less than the actual costs PSO incurred to provide electricity to them. Also, future fuel costs are projected to be higher than current levels. The adjustment to the fuel factor reflects both of these items.

"We understand any change to rates can be concerning for customers," said Steven Fate, PSO Vice President - Regulatory and Finance. "But it is necessary to adjust for the higher fuel prices now to help avoid larger increases later."

For a residential customer who uses 1,100 kWh of electricity a month, the fuel factor adjustment will increase their monthly bill by approximately six dollars a month.

PSO's fuel factors will be reviewed again in October to determine if further adjustments are necessary. PSO offers programs and information to help customers reduce the amount of energy they use.

Customers looking for information on how to save money on their electric bills are encouraged to visit PSOklahoma.com/save.

 PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving more than 545,000 customers in eastern and southwestern Oklahoma. Based in Tulsa, PSO has approximately 3,800 megawatts of generating capacity and is one of the largest distributors of wind energy in the state. News releases and other information about PSO can be found at www.PSOklahoma.com.

For more information:

Public Service Company of Oklahoma (PSO)

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