Opinion ID: 1194147
Heading Depth: 1
Heading Rank: 5

Heading: Area Development Expense.

Text: The Commission approved an expense item of $3,700,000 for Area Development expended by Oklahoma Natural during the test year. The Attorney General argues that this item should not have been allowed because The attraction of new industry is not a proper function of a regulated gas utility nor is it a proper cost of gas service to ratepayers. Mr. Wimpey testified that the item encompasses the total expenses incurred by Oklahoma Natural's entire marketing department which has many more functions than just the attraction of new industry to Oklahoma. Both Wimpey and Scott testified that the utility provided assistance to the state and local chambers of commerce in attracting new industry to Oklahoma, and that attraction of new industry to the state would be beneficial to Oklahoma Natural's ratepayers. For example, the adding of new industry would build Oklahoma Natural's load, thus spreading its fixed costs over a broader base of customers and limiting the need for future rate relief. The testimony was undisputed and constitutes substantial evidence in support of the Commission's findings and determination with reference to the utility's Area Development Expense.