The Oklahoma House on Tuesday ignored the opposition of the Oklahoma Corporation Commission and warnings that ratepayers will be “on the hook” for costs of utility construction projects while they are underway, and it approved SB998.
The bill, with slight changes by author Rep. Trey Caldwell, R-Faxon was one that drew opposition from state regulators a few weeks ago. Caldwell informed House members the changes included the removal of transition and switching language. It was also the Senate version of his HB2747 which didn’t make it out of the Senate.
Under the billl, as Rep. Caldwell explained to the House, once corporation commissioners approve a utility’s transmission project, ratepayers could be subject to immediate costs to pay for the construction.
“This piece of legislation will lower the overall cost to your mom and pop ratepayer when it comes to the additional costs that are coming,” he promised. “Whether if we do nothing or if we do something, there will be a plethora of generation, transmission and distribution needs across the state of Oklahoma over the next decade.”
But during debate, Rep. Forrest Bennett, D-Oklahoma City, argued it will amount to a gift to the utilities—a gift of transferring the risk and the responsibility of funding the infrastructure “that they should be doing.”
“We should be asking a lot more, a lot more of these utilities—we should expect a lot more responsbility from them,” he said, adding that many of the state’s utilities did nothing to prepare for Winter Storm Uri in 2021 and now ratepayers are paying the extended costs.
“I fundamentally disagree the ratepayer should be on the hook for this, especially with the sweetheart deals the utilities have.”
Elk City Republican Rep. Nick Archer also opposed the measure.
“While families are tightening their budgets—all across the state, regulated monopolies were reporting record earnings—they’re not struggling, they’re not—they’re thriving.”
He argued the bill, which supporters have contended emphasized the use of natural gas for the transmission projects, is not about natural gas because the utilities already have access to it.
“That’s not regulation,” stated Rep. Archer. “It’s guaranteed profit on all of our ratepayers. We’re lessening regulation and drastically changing the way the system works to favor a system that already has exclusivity.”
Rep. Caldwell responded, “A vote yes for this bill is a vote to lower utility costs across the state of Oklahoma—in the long term it will save ratepayers money.”
When the votes were counted, it was approved on a 48-36 vote and returned to the Senate. The House did not approve the emergency on the bill. The Senate had earlier approved the measure on a 26-20 vote.
YEAS: 48
Bashore Harris Lowe (D) Shaw
Boles Hasenbeck Luttrell Smith
Caldwell (T) Hildebrant Manger Steagall
Cantrell Hill Marti Sterling
Chapman Humphrey May Strom
Dobrinski Johns Maynard West (J)
Fetgatter Kane Newton West (T)
Ford Kannady Osburn Wilk
George Kelley Pae Williams
Gise Kerbs Patzkowsky Woolley
Hall Lay Pfeiffer Worthen
Hardin Lepak Schreiber Mr. Speaker
NAYS: 36
Alonso-Sandoval Deck Miller Staires
Archer Dollens Moore Stark
Banning Duel Munson Stewart
Bennett Gann Olsen Tedford
Blancett Hays Pogemiller Turner
Burns Jenkins Provenzano Waldron
Cornwell Kendrix Ranson West (K)
Crosswhite Hader McCane Roberts West (R)
Culver Menz Roe Wolfley
EXCUSED: 14
Adams Eaves Lawson Sneed
Blair Fugate Pittman Stinson
Caldwell (C) Grego Rosecrants Townley
Dempsey Hefner
CONSTITUTIONAL PRIVILEGE: 0
VACANCY: 3
