Oklahoma Corporation Commissioners on Wednesday went ahead with a 2-1 approval of the controversial $730 million acquisition of the Green Country power plant by Public Service Company.
But it proved to be something of a contentious meeting with Commissioners supporting different proposed orders allowing PSO to acquire the plant to meet future electric production needs.
Commissioner Kim David was eager to see PSO receive preapproval of the purchase, said she was “thrilled the plant came up for sale” and received the support of Commissioner Brian Bingman in voting for it.
“I think PSO has demonstrated a power need,” said Bingman during the lengthy discussion.
Proposed orders regarding the PSO request were submitted by Commissioner Bingman and Commissioner Hiett.
Commissioner Todd Hiett balked at jumping so quickly into approval, stating, “There’s no demonstration on record the company has a financial need for it.” He wanted more protection for ratepayers who will be hit immediately with increased rates to pay for the PSO acquisition.
“We’re putting ratepayers at risk. I think this is a major disservice to ratepayers of Oklahoma without some level of protection,” he charged. “We have to have some type of guardrail around it.”
“An investment of this nature we should take all the time and make sure ratepayers are protected,” he added.
During the extended discussion, Hiett charged there were “extraordinary risks in this purchase” and said the acquisition of the power plant did not add one megawatt to the electrical system of PSO. “There’s no benefit to the customer.”
“This is the last time we can address these things without protections in place. It places more risk on ratepayers than I have ever seen in my years on the commission.”
Commissioner David indicated there was a need for the acquisition so PSO could provide electrical power for the proposed $4 billion aluminum smeltering plant at the Port of Inola. But Hiett pointed out it could not be taken under consideration because the plant was not included in PSO’s legal filings and testimony with the Commission.
At one point, Commission Chair David asked the president and chief operating officer of Public Service Company of Oklahoma, Leigh Anne Strahler a question about cost recovery and had her offer an explanation. Since the meeting involved David’s use of the Tulsa office and remote video service, Strahler had to sit beside David to answer the question.
It raised the challenge afterward from attorney Thomas Schroedter who asked to respond and finally did after David hesitated allowing him to speak.
“This is highly unusual for someone to get up, without being under oath, no sworn testimony. This witness is not under oath—I don’t think I’ve ever seen this happen.”
It was later in the meeting when Commissioner David accused Schroedter of “dressing her down” for asking Strahler to speak.
“I took exceptions to your remarks. I did not take testimony. I simply asked a question.”
David also raised opposition to the acquisition by the Commission Administrative Law Judge Carly Ortel and the Commission’s Public Utilities Division.
“I’m concerned about the reliability of our grid. I feel the Commission should be more forward thinking and I’m concerned about putting guard rails in place.”
The final vote was 2-1 with David and Bingman supporting PSO and Commissioner Hiett voting against the preapproval.
Afterward, Commissioner Hiett spoke with Mike Ray of the Southwest Ledger, explaining the approval means that effective June 30 or July 1, PSO “will be able to start collecting money from its ratepayers on a 23-year old power plant that the company doesn’t need until 2030.”
In its filings, PSO projected a 30-year life for the power plant in Jenks and estimated capital expenditures would be $195.7 million while operations and maintenance costs would be $138 million and the plant would provide 768 MW of capacity to benefit the ratepayers.
“I wanted to hold PSO accountable for those numbers,” Hiett said, adding that his paragraph #49 of his proposed order would have authorized a waiver of those caps for unforeseen circumstances, such as force majeure (an event or effect that cannot be reasonably anticipated or controlled).
