Oil & Gas News

‘Lots of Mistakes’ OCC Says Millions Worth of Discrepancies Adding To Winter Recovery Costs

Oklahoma Corporation Commission, Commissioner, natural gas

By: KFOR – The Oklahoma Corporation Commission (OCC) held a meeting Tuesday morning in which one Commissioner claims there are “significant and substantial discrepancies” within OG&E, Oklahoma Natural Gas, and the Public Service Company of Oklahoma’s spending for the last two years.

In a 21-page investigation by Commissioner Bob Anthony, he points out several instances in which these companies spent money that’s either unaccounted for, spent on an unknown reason, or was overspent.

To name a few:

  • Commissioner Anthony is claiming OG&E exceeded the utility’s cap of $500,000 reimbursed Issuance Costs. He says $500,000 of OG&E’s Issuance Costs do not appear on the Oklahoma Development Finance Authority Treasurer’s “Statement of Approval” for OG&E. He also says there was an additional $220,000 spent for “OG&E Legal Expenses” and $85,000 was paid to Ernst and Young for what was termed as “Comfort” auditing/accounting.
  • Commissioner Anthony is claiming there is more than $1M of PSO’s various Issuance Costs, including legal fees, advisor fees, accounting fees, and administrative fees that do not appear at all on the Oklahoma Development Finance Authority Treasurer’s “Statement of Approval” for PSO. He claims PSO’s Issuance Costs were supposed to be capped at $700,000 though.
  • Commissioner Anthony is claiming ONG was only approved to pay the Attorney General and the Council of Bond Oversight $140,920 each but instead paid $146,650 each. He also claims ONG spent $50,000 on “Miscellaneous Expenses,” but it doesn’t appear on the Treasurer’s “Statement of Approval” for ONG.
  • Commissioner Anthony also points out some $20,000 paid to an unknown party for an “Internet Roadshow” for ONG, PSO, and OG&E which is allegedly not on any of the Treasurer’s “Statements of Approval.”
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He said these inconsistencies may be adding to the securitization costs currently straining Oklahomans.

Commissioner Anthony addressed the courtroom by saying he filed his findings about a month ago and so far, no one has done anything about it.

“The clock is ticking,” said Commissioner Anthony.

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