No formal vote was taken but by indications from Oklahoma Corporation Commissioners, it appears they are leaning toward supporting the preapproval request of Public Service Company of Oklahoma for the acquisition of the Green Country Power Plant in Jenks.
If approval by Commissioners Kim David, Todd Hiett and Brian Bingman is made, it will be in direct conflict with one of their Administrative Law judges, their agency’s Public Utilities Division and consumer groups. The ALJ and the PUD both recommended denial, pointing to PSO’s violation of commission rules regarding the requirement of public bids.
Adding to the mix is what some might describe as the “elephant in the room,”—-the $4 billion Emirates Global Aluminum plant unveiled last week by Gov. Kevin Stitt. It would be located at the Port of Inola but won’t be operational for another 5 years. Commissioners hinted at the topic without identifying it and suggested it is among some “huge” projects that are in the works for the state and would require more generated electricity. The power plant in question is located in Jenks and not very far from where the aluminum smelter would be located.
During a Wednesday meeting, Commission Chair Kim David stated, “There’s reasonable need and I have concern how the PUD and the ALJ came down with no need. I’d like to see us be more forward looking.”
“I believe it’s necessary and would like to see PSO get the plant,” she added.
Later in the conversation, David suggested with the “huge projects” that might be located in the region, there would be a need for additional capacity.
Commissioner Todd Hiett indicated he had “not landed on a position yet” but was “leaning toward finding a way to grant approval.”
“I think the ALJ presented a solid basis for rejection, but that doesn’t mean we should reject it,” he said, adding, “This case is very messy—it’s going to take a while.”
Commissioner Brian Bingman called it a “very unique case” and added, one thing in favor of the PSO reques is that the power plant is in Oklahoma and would be owned by Oklahomans.
“I’m working on it.”
Nothing was said about PSO’s apparent violation of not obtaining competitive bidding in the acquisition process, a claim echoed this week by some of the opponents.
The claim was made Monday during a Commission meeting where Thomas Schroedter, Executive Director and General Counsel of the Oklahoma Industrial Energy Consumers supported the recommendation of ALJ Carly Ortel and said her decision was based on evidence.
“PSO failed to comply with your rule about competitive bidding. You have to determine whether there’s a real need and not down the road,” he added. “The one key factor left out was there was no independent evaluator telling you that Green Country was the best resource.”
The Judge was also supported by attorney David Jacobsen of the Oklahoma Petroleum Alliance.
“The Green Country facility is too expensive and it’s 23 years old. The Administrative Law Judge recognized the facts. I urge you to uphold her recommendation.”
A decision will not likely be made in the coming week as well as Commissioner Hiett indicated he will be absent. A PSO spokesman explained the company has a goal of getting support from the commissioners “30 days prior to the closing date which is the end of June.”
The utility announced last summer it was going to acquire the power plant in a $730 million agreement. However, it’s preapproval request filed with the Commission will total at least $758 million and if approved, would add another $7.24 per month for an average residential ratepayer.