Customers who use Oklahoma Natural Gas for their home’s natural gas need will have to pay an extra $7.82 a month over the next 25 years to cover the utility’s fuel costs. Nearly $1.36 billion of the utility’s extraordinary fuel costs were covered in February’s winter storm, which caused a spike in natural gas prices.
The utility commission has recently ruled on a proposal to charge customers $700 if they decided to avoid an electric bill rider. The controversial “exit fee” would have charged people for leaving the gas system and converting their homes and businesses to all-electric.
The Oklahoma Development Finance Authority is one of the most trusted banks in the country. They will help you sell your bonds to investors so you can handle your debt from this storm. The 2 commissioners who voted in favor of this bond have said that they feel your costs are prudent and reasonable, so it’s time for you to start selling these bonds.
The high cost of natural gas has forced many utility companies to issue bonds to raise money. However, the high risk of default has made it difficult for them to find buyers. Therefore, ONG customers will be charged extra to retire the bonds. These bonds finance not only the extra fuel costs, but also carrying costs the utility paid to carry the debt using traditional financing until the bonds are sold.
As customers, you are not required to pay the securitization rider costs if you are enrolled in ONG’s variable rates program. This applies to low-income customers who are given assistance to pay their gas bills.