Opinion ID: 1194147
Heading Depth: 1
Heading Rank: 4

Heading: Money Spent for Funding of Gas Research Institute.

Text: The Commission allowed the sum of $433,309, the amount actually spent by Oklahoma Natural during the test year, in the funding of the Gas Research Institute as an item of expense. The testimony of J.D. Scott, Executive Vice President of Oklahoma Natural, supported by its exhibit, discloses that GRI is an independent, not-for-profit scientific organization created to plan and implement research and development activities for the benefit of the natural gas consumer. GRI itself does not engage directly in research and development, but is a planning and managing organization which pursues such activities through project contracts with not-for-profit institutes, technical consulting firms, universities, energy companies, and equipment manufacturers engaged in gas-related research and development. Currently, GRI is engaged in research and development projects involving gas-fired heat pumps, improved gas furnaces, improved gas water heaters, and improved gas domestic appliances which will provide direct benefits to the residential consumer. On the industrial aspects of its activities, GRI is engaged in research to develop an industrial heat pump, improved burner systems, and other conservation related projects. It is engaged in research to improve safety in the distribution of gas to the consumer and in developing alternative sources of gaseous fuels and enhanced recovery techniques for existing natural gas supplies which will benefit ratepayers. This evidence was unrefuted and was sufficiently substantial to support the Commission's finding and determination that the cost of GRI funding was a proper item of the utility's expense.