The Grove Treasurer Lisa Allred told the Grove Municipal Services Authority the city’s natural gas supplier Southern Star has applied to the Federal Energy Commission for a price increase.
Allred pointed out the city is already being billed a higher rate for the natural gas. The city has been paying around $68,000 to $72,000 a month for the gas which it then sells to both residential, business and other municipalities.
Allred said in anticipation of approval of a rate increase, Southern Star’s bill is now between $20,000 and $25,000 higher per month. The contracts allow the city to recoup the increase if the federal agency does not approve the increase. The cost of the gas will, of course, need to be passed on to users.
However, Allred said the cost will be a blended cost to include transportation cost as well as management fees, so customers will not experience a direct 20% increase in gas costs.
It was also pointed out the Public Service Company has applied for three separate rate increases with the Oklahoma Corporation Commission. Two of those have been approved which will affect residential customers by adding $16.07 a month to their bill. If the third request is approved, the average residential customer will see a $20.12 per month increase.
In other action, the Authority approved a plat application to build Stage 11 at Patricia Island County Club. It involves six lots along Lost Cove Drive.
The Authority also approved additional funds to purchase a new fueling system for the city. The bids for the complete system came in higher than anticipated so an additional $7,000 was approved to be used for the system.