FILE D MAY 1 9 2009 BEFORE THE CORPORATION COMMISSION OF THE ~~~R T,r ~~RK'~S OFFI CE~ C 0 IN THE MATTER OF THE APPLICATION OF CORPORATION COMMISSION ) OKLAHOMA GAS AND ELECTRIC COMPANY ) OF OKLAHOM A FOR AN ORDER OF THE COMMISSION ) CAUSE NO. PUD 20080039 8 AUTHORIZING APPLICANT TO MODIFY ITS ) RATES, CHARGES, AND TARIFFS FOR RETAIL ) ELECTRIC SERVICE IN OKLAHOMA . ) MOTION OF OKLAHOMA GAS AND ELECTRIC COMPANY TO ESTABLISH NOTICE REQUIREMENTS Comes now Oklahoma Gas and Electric Company ("OG&E" or "Company"), Applican t herein, and shows to the Commission as follows : On February 27, 2009, OG&E filed its Application Package in this proceeding i n accordance with OAC 165 :70. Thereafter, on April 29, 2009, the Commission issued Order No . 567320 establishing the procedural schedule herein and setting the hearing o n the merits for this Cause to commence on July 22, 2009. 2. OG&E is obligated pursuant to OAC 165 :5-7-50 to make a good faith effort to serve notice of its proposed rate change to all affected utility customers unless the Commissio n directs otherwise. OAC 165:5-7-50(b) further provides that unless the Commissio n directs otherwise, notice of hearing "shall be published once each week for two (2) consecutive weeks at least fifteen (15) days prior to hearing in a newspaper of genera l circulation published in each county in which are located utility customers affecte d thereby . . . . " 3 . Newspapers of general circulation are not published in each county in which OG&E ha s customers . Therefore, Applicant requests that the Commission waive said portion o f OAC 165:5-7-51(b) and proposes that notice of the hearing on the merits in this Cause be given by publishing the Notice of Hearing in two newspapers of general circulation within the State of Oklahoma (The Oklahoman and the Tulsa World) once each week for two (2) consecutive weeks with the first publication being at least fifteen (15) days prior to the hearing on the merits . In addition, OG&E also proposes that the Notice of Hearing be published in newspapers of general circulation once each week for two (2) consecutive weeks with the first publication being at least fifteen (15) days prior to the hearing on the merits in the following Oklahoma counties in which OG&E has customers : Alfalfa, Bryan, Coal, Dewey, Ellis, Grant, Jefferson, Johnston, Love, Major, Marshall, Woods and Woodward. The Notice of Hearing is attached hereto as Exhibit "A" . 4. Applicant will begin providing its Oklahoma jurisdiction customers with the information required by OAC 165 :5-7-50(a) during the week of June 4, 2009, as a bill insert . The bill insert is attached hereto as Exhibit "B" . The billing insert will have been mailed to all Oklahoma jurisdiction customers not less than fifteen (15) days prior to the commencement of the hearing on the merits as established in Order No . 567320 . WHEREFORE, premises considered, Applicant requests, pursuant to the Commission' s authority contained in OAC 165 :5-7-50, that the Commission approve the form of Notice of Hearing attached hereto as Exhibit "A" ; that the Commission waive the requirements of OAC 165 :5-7-50(b) and direct OG&E to publish Notice of Hearing for the hearing on the merits of this proceeding in two newspapers of general circulation within the State of Oklahoma (The Oklahoman and the Tulsa World) once each week for two (2) consecutive weeks with the firs t publication being at least fifteen (15) days prior to the hearing on the merits . In addition, OG&E also proposes that the Notice of Hearing be published in newspapers of general circulation once each week for two (2) consecutive weeks with the first publication being at least fifteen (15) days prior to the hearing on the merits in the following Oklahoma counties in which OG&E has customers: Alfalfa, Bryan, Coal, Dewey, Ellis, Grant, Jefferson, Johnston, Love, Major , Marshall, Woods and Woodward, and that the Commission issue such additional directions t o Applicant with respect to notice of the hearing on the merits of this proceeding as may b e appropriate in the premises . Respectfully submitted , OKLAHO AS AND EC RIC COMPANY By Patrick D. Shore, OBA No. 8205 William J . Bullard, OBA No . 1302 Kimber L. Shoop, OBA No. 19571 Oklahoma Gas and Electric Company P.O. Box 32 1 Oklahoma City, Oklahoma 73101 405-553-3182 405-553-3198 (Facsimile) and Curtis M . Long, OBA No . 5504 Fellers, Snider, Blankenship, Bailey & Tippens The Kennedy Buildin g 321 South Boston, Suite 800 Tulsa, Oklahoma 74103-3318 918-599-062 1 918-583-9659 (Facsimile ) an d Christopher W . Flynn Laura M. Earl Jones Da y 77 West Wacker Chicago, Illinois 60601-16 312-269-4156 312-782 8585 (Facsimile) Attorneys for Applicant CERTIFICATE OF MAIL ING This is to certify that on the 19th day of May, 2009, a true and correct copy of the above and foregoing Motion was mailed to the following : James L. Myles, Deputy General Counsel Lenora Burdine, Deputy General Counsel Oklahoma Corporation Commission P.O . Box 5200 0 Oklahoma City, Oklahoma 73152-2000 William L. Humes Elizabeth Ryan Whitney Weingartner Assistant Attorneys General 313 N.E. 21 st Street Oklahoma City, Oklahoma 73105-489 4 J . Fred Gist Hall, Estill, Hardwick, Gable, Golden & Nelson, P .C. 100 N. Broadway, Suite 2900 Oklahoma City, Oklahoma 7310 2 Thomas P. Schroedter James D. Satrom Hall, Estill, Hardwick, Gable, Golden & Nelson, P .C. 320 S. Boston, Suite 400 Tulsa, Oklahoma 74103 Rick D. Chamberlain Behrens, Taylor, Wheeler & Chamberlain 6 N.E. 63rd Street, Suite 400 Oklahoma City, Oklahoma 7310 5 Ronald E. Stakem Jack G.Clark, Jr . Clark, Stakem, Wood & Patten, PC Suite 40 0 101 Park Avenu e Oklahoma City, Oklahoma 7310 2 Kendall W. Parrish Ron Comingdeer & Associates 6011 N. Robinson Oklahoma City, Oklahoma 7311 8 Shelton L. Benedict 406 S . Boulder Avenue Suite 400 Tulsa, Oklahoma 7410 3 Patrick D. S ore Exhibit "A " BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOM A IN THE MATTER OF THE APPLICATION OF ) OKLAHOMA GAS AND ELECTRIC COMPANY ) FOR AN ORDER OF THE COMMISSION ) CAUSE NO. PUD 20080039 8 AUTHORIZING APPLICANT TO MODIFY ITS ) RATES, CHARGES, AND TARIFFS FOR RETAIL ) ELECTRIC SERVICE IN OKLAHOMA . ) NOTI CE OF HEARING NOTICE IS HEREBY GIVEN that Oklahoma Gas and Electric Company ("OG&E" o r "Company") has filed an Application in this cause seeking to increase its rates and charges for retail electric service to Oklahoma jurisdiction customers and seeking approval of the Commission for the filing of appropriate tariffs reflecting such increases in rates . OG&E notified the Commission of its intent to file an Application seeking to change its rates and charges on December 12, 2008, pursuant to OAC 165 :70-3-7, and thereafter, on February 27, 2009, the Company filed its Application and supporting documentation in compliance with the Commission's Minimum Standard Filing Requirements, OAC 165 :70. In its Application OG&E proposes: 1. to implement a general rate increase of $110,325,328 effective in the month of September, 2009 ; 2. to include approximately $ 1 .6 billion in OG&E rate base for capital investments made since rates were last reviewed and approved based on a 2004 test year ; 3. to recognize O&M expenses that have increased since rates were last reviewed and approved based on a 2004 test year ; 4. to recognize all known and measurable changes ; 5. to terminate the previously approved riders for the Redbud generating facility (approved in Order No . 559892 in Cause No . PUD 200800086) and the Centennial Wind Farm (approved in Order No . 524078 in Cause Nos . PUD 200500059 and 200500177) and include such costs in base rates ; 6 . to move all current costs contained within the Security Rider (which was originally approved in Order No . 499043 in Cause No . PUD 200200168) into base rates while preserving the Security Rider for recovery of future security costs ; 7. to modify the Cogeneration Credit Rider; 8. to terminate the Chain Account Aggregation Rider ; 9. to terminate OG&E's Performance Award for Curtailed Energy rider ("PACE") , Curtailment Rider ("CR") and Interruptible Rider ("IR") and replace these three riders with a Load Reduction rider ; 10 . to establish a test year ending September 30, 2008, with pro forma adjustments; 11 . to implement a SmartPower recovery rider to recover costs associated with OG&E's SmartPower deployment in Norman, Oklahoma; 12. to seek waiver of OAC 165: 35-21-21(3) to allow for remote disconnection of service for advanced meters used in SmartPower deployment ; 13 . to seek certain changes to OG&E's terms and conditions of service, including bu t not limited to, changes necessary to allow pre-paid billing, remot e connect/disconnect, and paperless billing ; 14. to seek changes to existing rate tariffs, including but not limited to: a. modifying the Residential customer charges, kWh block structures, and energy prices ; b . increasing the discount for residential customers who qualify for the LIHEAP rider and also renaming the LIHEAP rider the Low Income Assistance Program ("LIAP") rider ; c. modifying the Company's Time-of-Use ("TOU") tariffs, including adjustment of embedded fuel by time period ; d. modifying the General Service customer charges, the peak season kWh price, and kWh block prices ; e. modifying the Oil and Gas Producers ("OGP") rate tariff ; f. modifying the Public Schools - Non-Demand ("PS-ND") and Public Schools-Demand ("PS-D") rate tariffs ; g. terminating the Oil and Gas Producers Levelized ("OGP-LEV") , Public Schools-Non-Demand Compressed Time-of-Use ("PS-ND-C TOU"), Public Schools-Demand Compressed Time-of-Use ("PS-D-C TOU"); Power and Light Oil and Gas Producers ("PL-OGP"), Powe r and Light Levelized Demand ("PL-LEV"), and Large Power and Ligh t Levelized Demand ("LPL-LEV") rate tariffs; h . modifying the Municipal Water Pumping ("PM") rate tariffs ; i . modifying Large Power and Light ("LPL") rate tariffs ; J. modifying the Power & Light ("PL") tariff ; k. increasing the power factor for LPL TOU, PL, PL TOU, PS-D, and PS-D-TOU customers from 80 percent to 90 percent ; modifying Municipal Roadway and Area Lighting ("LM") and Outdoor Security Lighting ("OSL") rate tariffs ; m. modifying QF-1 and QF-2 rate tariffs ; n . modifying the Day-Ahead Pricing ("DAP") program ; 15 . to seek approval of a new normalized ICP average and excess production demand allocator ; 16. to seek approval of a new weather normalization methodology ; 17. to seek approval of the proposed "zero intercept" study ; and 18 . to establish two Variable Peak Pricing tariffs (one for residential customers an d one for general service customers) to be used in OG&E's SmartPowe r deployment in Norman, Oklahoma . NOTICE IS FURTHER GIVEN that, irrespective of the relief prayed for by OG&E in its Application, the Commission in this proceeding shall not be limited to matters described in said Application, but may inquire into all matters within the jurisdiction of the Commission involving the rates, services, practices, earnings and charges of OG&E and shall exercise its right to make any and all adjustments in and restructuring of rates, classifications and charges deemed appropriate by it, and in that connection shall not be limited to any method or means of effecting the same, but shall prescribe such rates and charges as may be just and proper and reasonable under the evidence and circumstances . NOTICE IS FURTHER GIVEN that all interested persons may appear and be heard and the Commission shall, after hearing, issue such orders and grant such relief as it deems fair, reasonable, necessary, proper and equitable in the premises, whether or not specifically requested in the Application . NOTICE IS FURTHER GIVEN that the hearing on the merits shall be heard before the Commission en banc, with Administrative Law Judge Maribeth D . Snapp serving as Referee for the Commission . The hearing shall commence on July 22, 2009, at 9 :30 am and continue each business day thereafter until the record is closed . The hearing shall be conducted each business day between 9:30 am and 4:30 pm, unless otherwise directed by the Commission. The hearing will be held in Room 301 located on the third (3`d) floor of the Jim Thorpe Office Building, unless otherwise directed by the Commission . NOTICE IS FURTHER GIVEN that this Notice of Hearing shall be given, at OG&E' s expense, by publishing this Notice of Hearing for the hearing on the merits of this proceeding in two newspapers of general circulation within the State of Oklahoma (The Oklahoman and the Tulsa World) once each week for two (2) consecutive weeks with the first publication being at least fifteen (15) days prior to the hearing on the merits . In addition, OG&E shall also publish this Notice of Hearing in newspapers of general circulation once each week for two (2) consecutive weeks with the first publication being at least fifteen (15) days prior to the hearing on the merits in the following Oklahoma counties in which OG&E has customers : Alfalfa, Bryan, Coal, Dewey, Ellis, Grant, Jefferson, Johnston, Love, Major, Marshall, Woods and Woodward. This Notice of Hearing shall further be given by regular or personal service at leas t fifteen (15) days prior to the hearing, to all parties of record including the Attorney General o f the State of Oklahoma . Notice of this hearing shall be given to all Oklahoma retail customers o f OG&E by using a customer bill insert beginning the week of June 4, 2009, with the last mailin g to complete a billing cycle to occur on or about July 4, 2009 . Said notice shall contain the dat e and time of the hearing, and a statement that all interested persons may appear at the hearing an d make public comment. Proofs of Publication and mailing shall be submitted for the record herein. NOTICE IS FURTHER GIVEN that for further information concerning this action , contact William J . Bullard, Patrick D . Shore or Kimber L. Shoop, 321 North Harvey, P .O. Box 321, Oklahoma City, Oklahoma 73101, phone 405-553-3182, attorneys for Oklahoma Gas and Electric Company, or James L . Myles, Deputy General Counsel for the Oklahoma Corporation Commission, P.O. Box 52000, Oklahoma City, Oklahoma 73152-2000, phone 405-521-2308, attorney for the Staff of the Public Utility Division of the Oklahoma Corporation Commission . CORPORATION COMMISSION OF OKLAHOMA BOB ANTHONY, Chairman JEFF CLOUD, Vice-Chairma n DANA L. MURPHY, Commissioner DONE AND PERFORMED ON THIS DAY OF MAY , 2009 BY ORDER OF THE COMMISSION : PEGGY MITCHELL, Commission Secretary Exhibit "B" Dear Customer : The Oklahoma Corporation Commission is scheduled to begin hearings on OG&E's request for a rate increase at 9:30 a.m., July 22, 2009, in Courtroom 301 on the third floor of the Jim Thorpe Building, 2101 North Lincoln Boulevard, Oklahoma City, Oklahoma 73105 . OG&E is seeking an annual increase of approximately $110 million to recover increased business costs and electric infrastructure investments the Company has made since 2004 . In addition, the Company is seeking authorization for the following : $19 million annually to implement the next phase of OG&E's automated metering and SmartPower program New rate options for fixed income customers . The $1 10 million increase, as proposed by OG&E, would raise a residential customer's bill by 7.7 percent when compared to current rates. This equals about $8 .27 per month on the average home bill . The proposal also would replace the current credit to low income DHS/LILEAP qualified customers with a fixed $10 per month reduction to their customer charge for all months. As proposed by OG&E, more than 70,000 small business customers would receive an average 0.9 percent rate increase. For the industrial rate classes the average increase would range from 4 .3 percent to 8 .4 percent. In accordance with the Procedural Schedule, the Oklahoma Corporation Commission will make the final decision on OG&E's request to determine the revenues required by the Company by August 26, 2009 . Any rate changes will become effective after the final decision is issued. The hearing will be held each business day and continue until concluded. All interested parties may appear at the hearings to make public comments . For further information regarding the Application, you may contact OG&E at 1-800-2729741 . In addition, you may visit the Commission's Web site at www .occeweb .com or send written comments addressed as follows : OG&E Rate Case Comments, c/o Office of General Counsel, Oklahoma Corporation Commission, P .O. Box 52000, Oklahoma City, Oklahoma 73152-2000 .