PSO’s request for power plant acquisition to go before regulators on Thursday

 

 

Oklahoma Corporation Commissioners could decide Thursday whether to approve a Public Service Company request for preapproval of its acquisition of the Green Country Power Plant, a request an Administrative Law Judge and the Commission’s Public Utilities Division say should be denied.

In a 1:30 p.m. meeting, Commissioners will consider the PSO request, which if approved, would mean another $7.24 to a monthly bill for a residential PSO customer. It would also be the second bill increase granted to PSO this year. Corporation Commissioners voted in January in support of a $119.5 million rate increase that officially boosted ratepayers’ bills by nearly $12.

PSO announced last fall its intention to acquire the power plant in a $730 million purchase. But last month, Corporation Commission Administrative Law Judge Carly Ortel recommended the commission reject the request.

The Commission should deny PSO’s request for preapproval of the Green Country facility as it does not meet the standard set for preapproval in 17 O.S. § 286(C).” She further said the costs were “unreasonable and largely unknown.”

In a hearing last week, PSO defended the request and charged Judge Ortel “was in error and misconstrued the rules of the Commission.” Consumer groups supported the judge and the Oklahoma Industrial Energy Consumers stated there was substantial evidence to support the judge’s recommendation. The AARP and the Oklahoma Petroleum Alliance also supported the judge’s conclusion.

Corporation Commissioners gave indications last week they might support the utility in its request. Commission Chair Kim David stated during the most recent hearing, she would like to see PSO acquire the power plant.

“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.”

Commissioner Todd Hiett also indicated he was “leaning toward finding a way to grant approval.”

What apparently influenced the commissioners was the recently announced $4 billion aluminum smeltering plant to be built at the Inola Port, a facility that would have a need for more generated electricity. While it was not mentioned by name during the commission meeting, there was a reference to a growing need for more electricity because of large projects anticipated for the state.

Commissioner Brian Bingman and Commissioner Todd Hiett will participate from the Concourse Theater, Suite C50, Will Rogers Memorial Office Building, 2401 North Lincoln Boulevard, Oklahoma City, Oklahoma 73105, (405) 521-2211

Commissioner Kim David will participate from the District 1 Tulsa Field Office for the Oil and Gas Conservation Division, Oklahoma Corporation Commission, Suite 900, 5100 E. Skelly Dr., Tulsa, Oklahoma 74135, (918) 367-3396

Agenda:

Topic
I. A. Call to order
B. Announcement concerning public notice
C. Determination of quorum
II. Approval of minutes of prior meeting(s)
III. Consideration of and possible vote(s) on proposed or potential orders in cases on the daily signing agenda docket. The Commission may discuss and consider alterations, revisions, or
amendments to the  r potential orders. (Votes may be taken on individual cases, on the daily signing agenda docket as a whole, or both by individual cases and the remaining docket. The vote on daily signing agenda cases may be combined with the vote on 24-hour signing agenda cases.)

IV. Consideration of and possible vote(s) on proposed or potential orders in cases on attached 24-hour signing agenda docket. The Commission may discuss and consider alterations, revisions, or amendments to the proposed or potential orders. (Votes may be taken on individual cases on the 24-hour signing agenda docket as a whole, or both by individual cases and the remaining docket.)

V. Discussion and possible vote to appoint an alternate designee to assist Commissioner Bingman, when unavailable, as the Commission representative to the Oklahoma Public Employees Retirement System (“OPERS”) Board pursuant to 74 O.S. § 905(1)

VI. Discussion of Enrolled Senate Bill 998 (1st Session of the 60th Legislature (2025)), whether pursuant to 75 O.S. § 253 an emergency rulemaking proceeding is necessary, and possible vote(s) to direct the Public Utility Division Staff to prepare an emergency rulemaking

VII. Discussion and possible vote(s) on a proposed Final Order in Case No. PUD2024-000032, Application of Public Service Company of Oklahoma, an Oklahoma Corporation, for a Proceeding Before the Commission En Banc as Provided for by Order No. 738226 to Address the Private Letter Ruling Received from the Internal Revenue Service, and/or any alternations, revisions, or amendments thereto proposed at the meeting

VIII. Discussion and possible vote(s) on a proposed Final Order in Case No. PUD2024-000057, Application of Public Service Company of Oklahoma for an Order of the Commission Granting Preapproval of the Purchase and Cost Recovery of the Green Country Generating Facility and Authorizing a Recovery Rider, and/or any alternations, revisions, or amendments thereto proposed at the meeting

IX. Adjournment

The Commission may take up the above items of business in a different sequence than that listed.
The meeting is open to the public.