OK regulators approve emergency directive to utilities amidst storm

 

It took Oklahoma Corporation Commissioners until Tuesday night to issue an emergency directive to utilities in the state, asking them to prioritize the delivery of natural gas and electrical power to customers in the middle of a second round of a major winter storm.

As heavy snow hit the state with a second round of major weather, commissioners voted 2-0 with Commissioner Bob Anthony not voting on a re-drafted version of an order that earlier in the day resulted in a two-hour discussion of proposed changes. At 7 Tuesday night, commissioners resumed their meeting.

“It wasn’t just about natural gas, it was about electricity needed for natural gas services,” explained Commissioner Dana Murphy who participated from her family’s northwest Oklahoma ranch while Commissioners Todd Hiett and Bob Anthony took part by telephone calls.

It was Commissioner Anthony who earlier in the day raised questions about a draft proposed by Brandy Wreath, Public Utilities Division Director. Murphy also questioned some aspects of it and it led to a two-hour delay in approval of a redrafted emergency order.

The order had been proposed by Wreath who wanted to emphasize the health, public safety and welfare of Oklahomans who depend on either natural gas or electricity to survive in the storm.

“We had large power plants that went off line and can’t be brought back now,” he told commissioners. “This is a dire situation—this is a real situation–it is not academic.”

Commissioner Anthony questioned the need for such an emergency order in the first place, stating that it’s what the utilities should do anyway during emergencies.

“I expect them to do their job. They better make a decision and do what’s right.”

But he chose not to participate in the final vote, saying he felt the order would result in “unintended consequences” and cause “interference with contracts.”

Chairman Hiett supported the initial order and also voted for the rewritten one.

“We’re just trying to put the tools in the toolbox,” he said.

Wreath told commissioners his original order would have allowed utilities to use the “force majeure” clause in their production contracts, in other words, acting because of something beyond their control.

“They need to choose human needs over anything else. At the end of the day, it will leave authority with the utilities.”

Wreath indicated a sense of urgency in the afternoon part of the meeting, repeatedly emphasizing “public health, safety and welfare.”

“We’re trying to avoid the loss of power production on the grid,” he said, explaining that wind production is up to 12% and helped the situation.

But frozen wind turbines have also “put us down significantly,” he added. “If that goes off tomorrow (Wednesday) and we get wet snow, there’ll be freeze offs—so this is a tool that needs to be available.”

At the time of the afternoon session, the Southwest Power Pool had lowered the situation back to a Level One for Oklahoma. By the time commissioners resumed their meeting in the evening, the situation had grown to a Level Two, one step below the adoption of more rolling blackouts.

The impact of the order will allow utilities to take whatever steps necessary to make sure electrical power and natural gas are provided to ensure the health, welfare and public safety of Oklahomans. If it leads to reduced power or gas supplies to industrial customers, the order allows for it to occur in order to provide warmth and power to residents.