Public Service Company of Oklahoma defended its proposed acquisition of a Jenks power plant arguing a recommended denial by a Corporation Commission Administrative Law Judge was in error.
“The Administrative law judge was in error and misconstrued the rules of the Commission,” argued attorney Jack Fite on behalf of PSO which filed a request for preapproval of $730 million for the Green Country Power Plant in Jenks. The total request was $758 million for the 23-year old power plant, an age that drew criticism from those who urged Corporation Commissioners on Monday to adopt the ALJ’s recommended denial.
Fite charged Administrative Law Judge Carly Ortel, who issued her recommendation last month had ignored key pieces of evidence supporting PSO’s request, which if approved would possibly mean another $7 or more a month for the utility’s ratepayers.
Deputy Attorney General Chase Snodgrass explained the Attorney General’s office “testified there is a need for capacity” and it appeared the acquisition was “the best deal for customers.” He added the Attorney General believes the cost was a “good price” but that “the Attorney General wants to hold the Company accountable to its analysis.”
Consumer groups, including the Commission’s Public Utilities Division, urged support for the ALJ’s recommendation to deny the request.
Thomas Schroedter, Executive Director and General Counsel of the Oklahoma Industrial Energy Consumers maintained the Administrative Judge’s report was supported by substantial evidence and the commission should follow her recommended “outright denial.”
“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.”
“I would caution you to make sure you have all the facts—there hasn’t been enough due diligence,” he said during his appearance before the commissioners.
The AARP also supported the judge’s recommendation as did the Oklahoma Petroleum Alliance.
“The Green Country facility is too expensive and it’s 23 years old,” argued attorney David Jacobsen for the petroleum group. “The Administrative Law Judge recognized the facts. I urge you to uphold her recommendation.”
No decision on the matter was made by the regulators as Commissioner Todd Hiett had to depart mid-way during the hearing because of a medical appointment. Commission Chair Kim David later announced that because of severe weather, she would cut the hearing short.
“Because the weather is severe, some of you want to get out of here and on the road to Tulsa. We want to make sure no one gets caught on the road.”