Storms, setbacks brought utilities, customers
multitude of challenges
Jan 1 - McClatchy-Tribune Regional News - Jack Money The Oklahoman
2007 treated electrical utilities and their customers coldly.
For both, the year basically started and ended the same -- significant ice
storms wrecked electrical lines and customers' homes.
In between, electricity providers were handed a setback by Oklahoma's
Corporation Commission when it ruled against the companies' proposal to
build a coal-fired power plant at Red Rock.
Meanwhile, motorists paid more at the pump. The last time prices for a
gallon of unleaded gas in Oklahoma cost less than at least $2 was the final
week of January 2007.
A frigid beginning
An ice storm struck southeastern Oklahoma in January 2007, leaving more than
125,000 customers without power. Outages took more than a week to repair for
some.
Then in December, another ice storm struck, this time leaving more than
640,000 customers without power. Some still were without electricity last
week as they waited for their electrical service entrances on their homes to
be repaired so power could be restored.
An effort by state officials to get a disaster declaration to help
homeowners with those repairs from the earlier storm failed.
In the latter storm, though, they worked with the Federal Emergency
Management Agency to create a program where cities could hire electricians
to make the repairs on private homes, paying the workers $500 for each job
they completed.
Through Dec. 26, Tulsa's program had restored power to 2,856 homes and had
work orders for repairs at 533 more.
Oklahoma City's program started at about the same time. A number of
applicants could not be obtained from that city on Monday.
State officials say the program, the first of its kind, likely will become a
fixture in federal response plans for future storms.
Coal again
To most, it appeared arguments in the case before Oklahoma's Corporation
Commission to build a new power plant near Red Rock revolved around whether
it should be fueled by coal or by natural gas.
On one side were Oklahoma's electric providers -- Oklahoma Gas and Electric
Co., Public Service Co. of Oklahoma and the Oklahoma Municipal Power
Authority -- while environmentalists and Chesapeake Energy Corp. were on the
other.
But governmental red tape decided this case, and it didn't go the way the
utilities hoped it would.
At least one commissioner decided the companies had not effectively
demonstrated the additional power was needed. Also, the commission had not
developed formal rules to pre-approve electrical generation plants even
though a law requiring pre-approval had been around since 2005.
The $1.87 billion, 950-megawatt plant would have been the largest
construction project in state history. A consortium of power producers had
proposed the 950-megawatt plant that would burn coal shipped to Red Rock
from Wyoming.
Electrical utility spokesmen predicted the decision would create higher
electrical rates for customers.
Higher pump prices
Consumers didn't see low gas prices during 2007, and they paid more for it
that year than they did in 2006.
During 2007, they paid an average of about $2.70 a gallon for regular
unleaded gas. In 2006, they paid an average of about $2.40 a gallon for
regular unleaded gas. |