Three more Oklahoma utilities could get support in their 2021 winter storm cost recovery plans as the Oklahoma Department of Finance Authority meets Wednesday to consider $2.27 billion in bond requests.
The ODFA will consider bonding or securitization requests of $1.45 billion from Oklahoma Natural Gas, $725 million from Public Service Company of Oklahoma and $95 million from Summit Utilities Oklahoma.
The first bond or securitization approved by the ODFA was to Oklahoma Gas & Electric and resulted in several legal challenges when the two sought final approval from the State Supreme Court.
It was the first such securitization case presented to the high court since the Oklahoma legislature approved the funding act following Winter Storm Uri in February 2021. At least one constitutional challenge was filed with the high court directly against the act.
Others were filed specifically against the OG&E and ODFA case which did not have the support of Oklahoma Attorney General John O’Connor. Last week, as OK Energy Today reported, the supreme court offered an opportunity to O’Connor to “intervene” in the case should he want to do so. The court gave him until March 1 to decide and if he chose to intervene, it gave him until April 1 to respond.
The utilities were largely hit with skyrocketing natural gas prices during the week of the storm that resulted in rolling electrical blackouts. A recent study of the storm costs throughout several states showed the most pronounced impacts were in Oklahoma and Texas.
“The most extreme spot gas prices were at the OneOK trading point in Oklahoma,” stated Intelometry in a study supplied to the National Association of Regulatory Utility Commissioners. The study said peak prices rose to 628 times normal and average prices to 244 times normal.
