The Oklahoma Corporation Commission will meet on Monday, March 20, 2023 at 1:30 p.m. A special meeting was called to discuss the Oklahoma Senate’s proposed electric utilities Ratepayer Protection Act of 2023 (SB 1103) and its impact or potential regulatory issues.
The public meeting will allow input from representatives of parties who have participated as parties of record in past utility cases at the Commission. It may include discussion and possible vote(s) on the Commission’s position and/or guidance to the Commission legislative liaison regarding the proposed bill.
Co-authored by Senate President Pro Tempore Greg Treat (R-Oklahoma City) and Majority Caucus Vice Chair David Bullard (R-Durant), SB 1103 would introduce Performance Based Ratemaking (PBR) rather than allow the Corporation Commission to handle rate increase requests from electric utilities. Once the utility files its PBR plan, the Commission may accept testimony in response to the utility’s plan within 75 calendar days. The utility has 90 days to file rebuttal testimony with a hearing date set within 120 calendar days of the application filing date. The Commission must issue a final order no later than 180 days following the application filing date. If no final order is filed within this period of time, the rates proposed by the utility in its PBR application “shall go into immediate effect, at the utility’s discretion, subject to refund following the issuance of a final order.” The Commission may also require reasonable security to assure prompt payment of any refunds including interest, if so ordered.
With regard to rate adjustment, SB 1103 provides as follows:
In a performance-based rate application, if the earned return on equity is greater than the dead-band, a refund shall be issued to customers over a 12-month period. The refund shall be 75% of such revenues associated with the earned return on equity greater than the dead-band and shall be credited or returned to utility customers. The remaining 25% of such revenues associated with the earned return on equity…shall be retained by the utility and reinvested in the utility’s power delivery infrastructure to improve reliability and resilience.
SB 1103 was introduced on February 6, 2023. It was referred to the Senate Energy & Telecommunications Committee the following day. On March 2, 2023, SB 1103 received a Do Pass as amended recommendation by a vote of 10-2 from the Committee. The bill now heads to the Senate Floor for further consideration.
A copy of the 17-page bill can be found here.
President Pro Tempore Treat’s office filed a Floor Amendment to SB 1103 at 1:37 p.m. today. A copy of the Floor Amendment can be found at http://webserver1.lsb.state.ok.us/cf_pdf/2023-24%20FLOOR%20AMENDMENTS/Senate/SB1103%20(3-20-23)%20(TREAT)%20FA1.PDF.
