In a new final order created and redrafted by one Oklahoma Corporation Commissioner, the state regulators on Monday gave approval with restrictions to the proposed PSO $118 million energy center at the Fort Sill Army Post. The question now is—will PSO and the Army move ahead with what turned out to be something of a controversial proposal to create secure and emergency electrical power for the post?
The PUD 202000097 PSO Final Order (updated) as redrawn by Commissioner Dana Murphy and supported by Chairman Todd Hiett stated “that PSO’s Application for pre-approval of the Ft. Sill Energy Center shall be approved, subject to the limitations noted hereinabove.”
Under the 2005 law created by the legislature and used by PSO in filing for pre-approval of the costs of the project, the Commission had to determine a “need” for the project “after consideration of reasonable alternatives.”
The project involves the creation of a solar facility as well as a reciprocating internal combustion engine facility or RICE. PSO customers would pay for the project while Fort Sill would contribute $10 million.
The order as approved Monday found PSO’s choice of the RICE facility “imposes substantial incremental costs on its customers” and are “unreasonable and unjust.” But the commission order also authorized the service proposed by PSO to be offered to Ft. Sill.
Commissioner Murphy’s rewritten order found that the energy center should be approved “with modifications to PSO’s recovery of the RICE” facilities. It also stated that PSO’s customers’ cost responsibility “should be no greater than the revenue requirement for an equivalent amount of capacity located elsewhere in the grid” in order to fairly protect the public’s interest.
The order also pointed out that PSO had not performed any analysis of the need for generation facilities providing ancillary services to stabilize the grid. It also asked the utility to file a rate case at the earliest possible date at which costs associated with the energy center could be included in an historic test year.
The order was approved on a 2-0 vote with commissioner Bob Anthony stating his vote would be a separate and attached opinion, a statement that prompted a lengthy debate over whether the opinion constituted a public vote.
“My concern is it could place the order in jeopardy,” stated chairman Hiett who was later informed by general counsel that Anthony’s decision would not jeopardize the vote.
“I don’t know what else to do. I have a responsibility to the open meeting act and it’s a difficult situation,” he told Anthony.
Anthony suggested that under the Title 17 law used by PSO in filing for the pre-approval, the commission had an obligation to make a decision within 240 days and it failed to meet the deadline.
Anthony later submitted his 2021-06-07 Separate Opinion of Comm. Bob Anthony, PSO-Ft Sill Cause No PUD 202000097 in which he stated, “Time will tell if today’s “limited” approval meets the need.”
His brief opinion also concluded that in order to enable Ft. Sill to strengthen its strategic energy resilience using secure on-site facilities, the commission “should have issued a timely order” acceptable to the Department of Defense and PSO.
As for what PSO might do, spokesman Stan Whiteford responded to an OK Energy Today inquiry by stating he could not answer because the company had yet to receive the written final order.
If PSO decides to move ahead with the project and pass along the costs, charges would start showing up on bills in 2023. The total cost of the rider would be less than $1 per month.
PSO does not need approval from the commission to begin construction. What it sought was pre-approval of passing the costs along to the customers.