Commission to Rule on Controversial Construction Cost Recovery
Oklahoma Gas and Electric (OG&E) will learn Thursday whether Oklahoma Corporation Commissioners will approve or deny the utility’s request for Construction Work in Progress (CWIP) on major energy improvement projects.
If approved, CWIP would allow OG&E to charge its nearly 900,000 customers for project costs while construction is still underway. The process was made possible through the legislature’s approval of Senate Bill 998 (SB998)—a measure that several corporation commissioners opposed earlier this year.
The proposal would add 60 cents to monthly customer bills beginning in 2026, rising to more than $4 by 2031.
Commissioner Bingman Proposes Denial Order
Denial Based on Ratepayer Impact
At issue is whether regulators will agree with OG&E’s filing after Commissioner Brian Bingman proposed a denial order during last week’s commission meeting.
“CWIP is not in the best interest of ratepayers,” Bingman said while explaining his 128-page proposed order. “We will follow the law but it has a big impact on ratepayers.”
His order explicitly states, “The Commission specifically rejects OG&E’s CWIP request in this case.”
However, Bingman’s proposal would still allow preapproval for certain generation projects, including new gas turbines at the Horseshoe Lake Power Station in eastern Oklahoma County.
Commission Recognizes OG&E’s Competitive Bidding Process
Partial Approval for Generation Sources
The order noted OG&E’s thorough procurement process, stating:
“OG&E conducted a competitive bidding process, evaluated a large number of bids, negotiated for seven highly ranked projects, and made reasonable choices to move forward with the agreements it could reach. However, the Commission declines to wholly approve the cost recovery plan put forward by OG&E.”
This acknowledgment suggests the commission may recognize OG&E’s planning diligence but still question the financial burden of early cost recovery.
Commissioner Hiett Backs Denial, Citing Long-Term Costs
Ratepayer Detriment Could Last 25 Years
Commissioner Todd Hiett agreed with Bingman’s findings, emphasizing that CWIP would hurt ratepayers for decades.
“The math is so absolutely clear that CWIP treatment is a detriment to ratepayers,” Hiett said. “If they enjoy any savings at all, it’s going to be 25 years and beyond before they get that savings. Those customers may not be customers—they may not be alive. Those businesses may not be alive.”
Hiett Raises Constitutional Concerns Over SB998
Law Removes Commission’s Full Authority
Hiett previously testified during a state House interim study on energy needs, warning that SB998 limits the commission’s constitutional authority.
“The commission will not be able to completely fulfill their constitutional duty, in my opinion, because they will have to meet the statute to allow the utility to start collecting from the ratepayers for financing cost,” he told legislators.
Legal Clarity on SB998 and Supporters’ Role
Deputy Attorney General Explains Statutory Requirements
A Deputy Attorney General told commissioners that the new law—effective August 28—includes the word “shall,” indicating a mandatory provision requiring compliance.
OG&E continues to receive support from the Attorney General’s Office, the Petroleum Alliance of Oklahoma, and the Public Utility Division (PUD). The three entities signed a stipulation agreement backing the utility’s CWIP request.
Thursday’s Meeting Details
Public Attendance and Locations
The Oklahoma Corporation Commission will take up the CWIP issue Thursday at 1:30 p.m. The agenda confirms that commissioners will participate from two separate locations, with the public invited to attend at either site.
Commissioner Hiett and Commissioner Bingman 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
I. A. Call to order
B. Announcement concerning public notice
C. Determination of quorum
II. 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 proposed or 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.)
III. Discussion of and possible vote(s) on a proposed Final Order, and/or any alterations, revisions, or amendments thereto proposed at the meeting, 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
IV.
A. Discussion of the Advanced Notice of Proposed Rulemaking (“ANOPR”) issued by the Federal Energy Regulatory Commission’s (“FERC”), in Docket No. RM26-4-000, Interconnection of Large Load to the Interstate Transmission System
B. Discussion and possible vote(s) to submit written comments in response to the FERC ANOPR, and/or any alterations, revisions, or amendments thereto proposed at the meeting
V. Adjournment