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City of Ponca City shares update on fuel prices


The electric grid relies heavily on natural gas for power generation. Compared to 2021, natural gas market prices were up 291 percent in May of 2022 and 248 percent in April of 2022. Some factors cited for the rise in natural gas prices include: unusually high temperatures in some parts of the U.S., the Russian invasion of Ukraine, the rising demand for U.S. natural gas exports, and depleted natural gas storage.

“Our wholesale power supplier, OMPA (Oklahoma Municipal Power Authority) has informed us that it does not expect higher than normal market prices for natural gas to end anytime soon, stated Phil Johnston, General Manager of Ponca City Energy.” Johnston continued, “These prices have impacted the cost of electricity in recent months.”

Increases in natural gas prices are passed along from OMPA to member cities, such as the City of Ponca City, through the Energy Cost Adjustment. The Energy Cost Adjustment is used to make up the difference in monthly changes to the cost of delivering power.

Increases in the Energy Cost Adjustment from OMPA are passed along to Ponca City Energy customers through the Power Cost Adjustment. Utility bills that are received through the mail refer to this cost as a “Power Cost Adjustment” and bills received through email refer to this cost as a “Fuel Adjustment.” Both are listed separate from base rate charges.