The Oklahoma legislature on Tuesday sent Gov. Kevin Stitt the utility measures intended to spread the cost of historic February winter storm natural gas over a period of nearly 30 years.
Senate Bills 1049 and 1050, if signed into law by the governor will ease consumers’ pain of paying for billions of dollars in natural gas costs experienced by utilities in order to keep electrical power flowing during rolling blackouts in February. Senate Bill 1049 applies to nonregulated utilities. Senate Bill 1050 applies to investor-owned utilities that are regulated by the state Corporation Commission.
The bills will allow the Oklahoma Development Finance Authority to make low-interest loans to the utilities in order to pay the fuel costs from the deep freeze that hit Oklahoma. Utilities will repay the loans through surcharges on utility bills sent to consumers.
During House debate on Tuesday, Rep. Garry Mize, R-Edmond, the House author explained the bond issues could possibly total $3 billion. It could take months for the costs to be known once utilities decide if they will take part in the effort to avoid consumers paying direct costs.
Some legislators were critical of the measures saying ratepayers are not offered sufficient protections. They also questioned whether the approval of the bills might allow utilities to avoid potential criminal investigations into possible wrongdoing or profiteering.
Two Oklahoma City Metro representatives released statements after Senate Bill 1049 passed the House.
Rep. Andy Fugate, D-Del City, filed an unsuccessful amendment to recapture the profits utility suppliers made during our recent ice storm:
“I applaud my colleagues for their efforts to ease the cost burden for Oklahoma’s utility customers,” Fugate said. “However, the language in Senate Bill 1049 is a half-measure. It does nothing to recover any of the obscene profits made by those who manipulated energy markets during a crisis. Whether customers pay all at once or using an installment plan, the fact remains: the people of Oklahoma will pay for this. The current bill merely converts that payment from a lump sum into a utility tax.
“During the recent ice storm, utility suppliers manipulated markets to overcharge Oklahomans by $4.5 billion in just a matter of days. That’s $1.5 billion more than we will budget this year for all of Oklahoma’s public school children. It’s outrageous that we are moving to pay this without also working to get any of this money back.
“The Legislature has entertained all manner of legislation demanding the AG work on issues. This is an issue that truly deserves his attention.”
Rep. Mickey Dollens, D-OKC:
“Oklahomans across the state are struggling to get back to normal after 2020,” Dollens said. “Now they are being asked to shoulder a $4.5 billion dollar energy bill. If the ongoing investigation concludes energy providers manipulated the market to profit off February’s Arctic blast, Attorney General Hunter must stand up for the people who elected him and do everything in his power to reclaim their hard-earned dollars.”