Oklahoma Eyes Electricity Transition Fee

Natural gas customers would be billed almost $1,400 to switch to all-electric service.

Oklahoma’s largest natural gas distributor wants to charge residential customers up to $1,375 for shutting off their gas service and switching to all-electric homes. Oklahoma Natural Gas (ONG) says the fee will help the utility recover $1.4 billion in costs from a February 2021 winter storm that resulted in higher gas rates for suppliers. 

A fee proposal by Oklahoma Natural Gas might make moving from natural gas to all-electric energy throws a roadblock in the path of transitioning away from fossil fuels. Credit: Green Builder Media

According to a report by KFOR News, ONG’s existing customers will pay slightly higher gas bills over the next 25 years, totaling $7.80 per customer. Anyone who wants to switch to all-electric must pay a $35 to $55 termination fee, multiplied by the years remaining in ONG’s loss recovery period. Someone cancelling their gas service in 2022, for example, would pay $875 to $1,375; a customer who does it 24 years from now would pay $35 to $55. 

Opponents say the measure will create a new way for pro-gas regulators to prevent consumer transitions from fossil fuels to clean air alternatives. The proposal, if approved by the Oklahoma Corporate Commission, would take effect by June 2022, according to the Huffington Post.