Two consumer groups joined forces in a recent effort to convince Oklahoma Governor Kevin Stitt to veto a bill that would allow utilities to charge customers while electric projects are under construction.
“This bill would shift unnecessary financial risk onto Oklahoma’s ratepayers while undermining the constitutional authority of the Oklahoma Corporation Commission, wrote leaders of the AARP and the group Americans for Prosperity-Oklahoma.
“SB998 allows monopoly utility companies to begin recovering costs — and earn a guaranteed rate of return over 9% — on new natural gas generation projects before those projects even become operational,” added Sean Voskuhl, State Director of AARP Oklahoma and John Tidwell, State Director of Americans for Prosperity-Oklahoma.
The two further claimed the “Construction Work in Progress” or CWIP finance would not doubt benefit utility companies’ bottom lines but do so at the direct expense of Oklahoma families and seniors already struggling with higher costs across the board.
“Worse yet, the bill potentially violates the Oklahoma Constitution by diminishing the oversight authority of the Corporation Commission,” continued the two leaders. “By requiring the Commission to allow early cost recovery without a full and independent review, SB998 sidelines the very regulatory body established to protect consumers from unjust and unreasonable utility practices.”
They said if the bill becomes law, it will in effect hand a blank check to monopoly interests.
Below is the full letter:
Veto Request for SB998 – Protecting Oklahoma Consumers from Rising Utility Costs and Preserving
Constitutional Oversight
Dear Governor Stitt,
On behalf of our combined 450,000 members and activists across Oklahoma, AARP Oklahoma and Americans for Prosperity-Oklahoma respectfully urge you to veto Senate Bill 998. This bill would shift unnecessary financial risk onto Oklahoma’s ratepayers while undermining the constitutional authority of the Oklahoma Corporation Commission.
SB998 allows monopoly utility companies to begin recovering costs — and earn a guaranteed rate of return over 9% — on new natural gas generation projects before those projects even become operational. This socalled “Construction Work in Progress” (CWIP) financing may benefit utility companies’ bottom lines, but it does so at the direct expense of Oklahoma families and seniors who are on a fixed income and are already struggling with higher costs across the board.
Oklahoma utility rates have skyrocketed in recent years, outpacing wage growth and straining household budgets. SB998 will further accelerate these rising energy bills by forcing customers to pay for projects before a single kilowatt is delivered — projects that may run over budget or fail to deliver promised results.
Worse yet, the bill potentially violates the Oklahoma Constitution by diminishing the oversight authority of the Corporation Commission. By requiring the Commission to allow early cost recovery without a full and independent review, SB998 sidelines the very regulatory body established to protect consumers from unjust and unreasonable utility practices. This erosion of oversight sets a dangerous precedent and weakens one of the state’s most important consumer protection institutions.
The people of Oklahoma deserve transparent, accountable utility regulation—not blank checks handed to monopoly interests. SB998 strips away those safeguards and saddles consumers with all the risk and none of
the guarantees.
As advocates for responsible government and affordable living, we ask you to stand with Oklahoma’s families, seniors, and small businesses—by vetoing SB998.
Respectfully,
John Tidwell
State Director
Americans for Prosperity–Oklahoma
Sean Voskuhl
State Director
AARP Oklahoma
