A move by Oklahoma Gas and Electric to take advantage of a barely month-old new law that allows utilities to charge ratepayers while construction is underway on projects will go before Oklahoma regulators on Wednesday.
The utility, hoping to seize on the prospects of SB998, the bill that became law without the signature of Gov. Kevin Stitt, filed a request seeking preapproval of new rates based on OGE’s expansion of energy projects.
Also known as Construction Work in Progress or CWIP, the law created a cost recovery method used by companies in paying for the contruction of a new or newly expanded natural gas facility. When the bill was introduced in March, one of the authors, Sen. Grant Green, maintained the bill would save money for ratepayers.
“If we start paying and collecting as ratepayers when they start the project, that just keeps stuff from compounding after the project is done. It’s kind of like a pay as you go thing, it’s just going to cheapen the cost at the end,” Green said.
However, the Corporation Commission came out publicly against CWIP.
“SB 998 only benefits the utility company at the expense of the ratepayer, who will be forced to fund these projects prior to receiving the benefits. The CWIP issue as imagined in SB 998 goes against 100 years of ratemaking principles and usurps the constitutional duty of the statewide-elected Corporation Commissioners to keep rates fair, just and reasonable,” Commission Chairman Kim David said.
OGE initially made a rate request filing in late May but withdrew it when the bill was allowed to become law. A filing in the OCC’s court clerk’s office on May 27 shows Oklahoma Gas and Electric (OG&E), withdrew a previous Notice of Intent that was seeking to modify rates and charges for customers.
OGE vice president of marketing and communications, Christi Woodworth offered a public explanation.
“Generally, OG&E requests a review when current rates can no longer support the reliability, grid strengthening and infrastructure improvements required to provide our 909,000 customers with safe and reliable electricity at some of the lowest rates in the nation. In order to request a change, OG&E requests a review of our rates by the OCC,” Woodworth said.
“The passing of Senate Bill 998 impacts forward-looking calculations on how new infrastructure investments will be included in rates in the future and the company needed time to understand the full impact going forward. A rate review is a multi-month, transparent process and we need to ensure that our request reflects what is required for sufficient, reliable service and a healthy electric grid. We will revisit the timing of a new rate review later this year,” Woodworth added.
OG&E also referenced their May 19 preapproval application for the addition of two new simple cycle gas-fired combustion turbines at Horseshoe Lake, which is looking to use CWIP for construction. The Horseshoe Lake combustion turbines project is the first request for a CWIP project in over a decade. The OCC mentioned the uncommon use as a reason they are opposing SB 988.
“Utilities have not sought the ability to recover CWIP before a plant is designated as ‘used and useful’ in over a decade. If a utility believes this is in the ratepayer’s best interest, then it should file a case and present its best arguments instead of asking the Legislature to mandate this approach,” Commission Chairman Kim David said.
Another aspect of the new law shortens the corporation commission’s review window for the project from 240 days to 180.
Then, on Sept. 30, OG&E explained its needs in an “Issues List” filing (PUD 2025-000038) with the Corporation Commission. It is seeking preapproval of a number of energy projects including the Kiamichi CPA with a term of five years from an existing natural gas fired facility locate in Oklahoma for 300 MWs of capacity beginning in 20210 and increasing to 450 MWs of capacity in 2031.
Also on the PreApproval list is the Black Kettle CPA (Clean Power Alliance) with a term of 20 years from a newly constructed battery energy storage system facility located in Oklahoma for 95 MWs of capacity beginning in 2027. The utility also wants approval for the addition of two new simple cycle gas-fired combustion turbines at the Horseshoe Lake facility, adding 448 MWs of nameplate capacity with an in-service date in 2029,
Below is the agenda for the 9 a.m. meeting
OKLAHOMA CORPORATION COMMISSION
Notice of Public Meeting
Special Meeting
Notice is hereby given to all persons that the Oklahoma Corporation Commission (“Commission”)
shall meet and conduct business, as follows:
Time, Day, and Date: 9:00 a.m. Wednesday, October 08, 2025
AGENDA
I. A. Call to order
B. Announcement concerning public notice
C. Determination of quorum
II. Proceedings, including Public Comment, a Pre-Hearing Conference, to include consideration, potential hearing, and potential vote(s) on Oklahoma Industrial Energy Consumers’ Motion to Determine Applicability of Senate Bill 998 filed September 30, 2025, and Hearing on the Merits in Case No. PUD2025-000038, In the Matter of the Application of Oklahoma Gas and Electric Company for Commission Preapproval of
New Generation Capacity Pursuant to 17 O.S. § 286(C) and Rider Cost Recovery
III. Adjournment