Arkansas Oklahoma Gas (AOG) Secures Legal Victory Against BP, Obtains $18 Million for Customers

AOG wins breach of contract lawsuit against BP following 2021 Winter Storm Uri


Fort Smith, Arkansas (September 12, 2023) – Arkansas Oklahoma Gas (AOG), a subsidiary of Summit Utilities, Inc., wins $18 million in a civil lawsuit against BP Energy Company (BP) that will reduce natural gas costs for its customers. AOG filed a lawsuit against BP for breach of contract after it had failed to deliver natural gas supply in February 2021 during Winter Storm Uri, which resulted in increased gas costs for customers. The Federal District Court ruled that BP must pay AOG $18 million in damages, plus interest and certain litigation costs.

“This is a victory for all our AOG customers and will reduce the amount of Winter Storm Uri costs collected from customers,” said Hallie Gilman, EVP & Chief Legal Officer for Summit Utilities, Inc. “I am proud of the hard work our team put forward taking on this challenge. We deeply care for our customers’ best interests and are pleased with this win.”

Oklahoma Attorney General Gentner Drummond issued a quote on AOG’s legal victory:

“I applaud Arkansas Oklahoma Gas for its decisive action against suppliers who injured our State during Winter Storm Uri. This judgment will help reduce the burden of Uri’s affect on natural gas obligations by more than $3.5 million for AOG’s Oklahoma customers. Moreover, AOG deserves to be commended for working with my office and the Oklahoma Corporation Commission Public Utility Division to negotiate an agreement for financing Winter Storm Uri natural gas costs without securitization bonds. This commitment saves customers millions of additional dollars and demonstrates the company is willing to share in the costs of Winter Storm Uri and take affirmative actions to protect its customers,” said Oklahoma Attorney General Gentner Drummond.

AOG customers pay for the gas costs associated with Winter Storm Uri as part of their monthly bills. The $18 million will reduce the costs to be collected from customers moving forward.

AOG filed its lawsuit against BP in 2021. The lawsuit claimed BP failed to provide the contracted amount of natural gas units to AOG customers during Winter Storm Uri, which forced AOG to buy gas from other sources at prices far in excess of the price it would have paid had BP delivered the gas as required.