Corporation Commission granted more time to respond to legislator’s challenge of PSO rate hike

 

 

The Oklahoma Corporation Commission wanted more time and more pages to respond to one of the Supreme Court challenges made by a state legislator who contends a rate hike for Public Service Company of Oklahoma is unconstitutional.

The Commission, through its Deputy General Counsel Daniel P. Boyle, was recently given approval for more time and pages by Supreme Court Chief Justice Dustin P. Rowe.

Rep. Gann’s challenge was filed April 17. In a September 2, filing, the Commission contended Gann’s “brief-in-chief,” filed on August 21, included “several new issues and seeking to collaterally attack Commission orders and the entire securitization process was not previously mentioned in filings by Appellant.”

The Commission, according to Supreme Court regulations, was to have an answer brief within 40 days of the filing, which would have put the deadline at September 30. The response was also limited to 30 pages.

However, the agency asked for “additional time and pages for the purpose of considering the new issues presented and responding to the arguments in the 20 pages that Appellant dedicated to these new arguments.” The Corporation Commission asked for 20 additional days and an additional 18 pages to respond to the new issues.

Justice Rowe, in his order on September granted the additional time and declared the Commission’s respond had to be filed no later than October 20. However, he granted only 12 additional pages beyond the usually-required 30 page limit and stated the answer brief shall not exceed 42 pages.

Rep. Gann, in his “brief-in-chief” maintained the Corporation Commission was wrong in three separate cases involving PSO, including its bond securitization for 2021 Winter Storm Uri utility costs.

“The effect of the OCC’s errors has been to cover up significant wrongdoing during and after the 2021 Winter Storm, resulting in millions of Oklahoma utility customers each paying thousands of dollars in illegitimate charges on their monthly bills for decades.”

He also charged the additional monthly costs “add up to billions for a handful of special interests.” Rep. gann called it the “largest fleecing of the Oklahoma ratepayer in the history of the state.”

Gann also contended the Commission failed to follow “section 9078 of the Securitization Act” that required an audit “to be part of any general rate case” filed by PSO while the bonds remain outstanding.

In his August filing, Rep. Gann also charged other discrepancies existed and “included the fact that AEP/PSO’s lender, RBC Capital, had been mysteriously hired to underwrite PSO’s bond deal, despite the fact that RBC’s bid was more than 25% higher than J.P. Morgan’s! Nevertheless, by a 2-1 vote, the OCC approved a $131 million rate increase for PSO in November 2023.”