Supreme Court Confirms OG&E’s Right to Serve Cherokee Nation Facilities
The Oklahoma Supreme Court ruled that the Oklahoma Corporation Commission made the correct decision five years ago in allowing Oklahoma Gas & Electric (OG&E) to offer electrical service in another utility’s region.
Lake Region Electric Cooperative, headquartered in Hulbert, Oklahoma, challenged the August 18, 2020 decision of state regulators and took the case to the Supreme Court. It argued that OG&E should not have been serving electric-consuming facilities owned by the Cherokee Nation and Cherokee Nation Enterprises, LLC. The cooperative contended that OG&E’s servicing of electricity at the facilities violated the Retail Electric Supplier Certified Territory Act (RESCTA).
Corporation Commission Decision and Equitable Defenses
The Oklahoma Corporation Commission agreed at the time that OG&E had violated the RESCTA, but the utility had used third-party transmission lines to reach the facilities in Lake Region’s territory.
However, the Commissioners also considered what they called “equitable” defenses by OG&E and therefore denied the challenge brought by Lake Region Electric Cooperative.
As the Supreme Court noted in its ruling,
“The issues raised on appeal concerned whether the Large-Load Exception to RESCTA permits OG&E to connect with third-party transmission lines to extend its retail electric service to a customer in Lake Region’s certified territory and whether the equities were properly weighed.”
Supreme Court References Earlier Case and Legal Consistency
The Justices also explained that a similar case led to an earlier ruling in a comparable challenge involving OG&E.
The Court stated:
“Upon review of the record and briefs of the parties, this Court has determined the issues raised in this appeal have already been decided in our recent opinion in Oklahoma Electric Cooperative v. State ex rel. Oklahoma Corporation Commission, 2025 OK 60, — P.3d —.”
In their conclusion, the Court determined:
“In Oklahoma Electric Cooperative, we held RESCTA’s Large-Load exception does not permit OG&E to connect with third-party transmission lines in order to extend its service into someone else’s certified territory in accord with our prior decision in People’s, 2025 OK 15, 565 P.3d 418. Nevertheless, OG&E should not be enjoined from serving the customer because People’s holding has prospective-only application. 2025 OK 60, 0, — P.3d at —. For that reason, we affirmed the Commission’s order in Oklahoma Electric Cooperative insofar as it permitted OG&E to continue providing retail electric service. We now affirm the Final Order of the Corporation Commission en banc in this matter for the same reason.”
Final Order and Concurrence
The Final Order of the Oklahoma Corporation Commission was affirmed.
ROWE, C.J.; KUEHN, V.C.J.; and WINCHESTER, COMBS, DARBY, KANE, and JETT, JJ., concur.
EDMONDSON and GURICH, JJ., disqualified.
Decision Strengthens Regulatory Clarity in Oklahoma
The ruling confirms that the Oklahoma Corporation Commission acted within its authority and that OG&E can continue providing electrical service to Cherokee Nation facilities. It also reinforces prior interpretations of the Large-Load Exception under RESCTA and ensures consistency with the Oklahoma Electric Cooperative and People’s cases.
This case marks a significant precedent for how Oklahoma utilities can serve customers located near certified territory boundaries, balancing regulatory compliance with equitable considerations.