CWIP request triggers new internal energy divide
One of the groups that signed on in support of the controversial CWIP request by Oklahoma Gas and Electric Company to cover construction costs for added electric generation projects is also putting up a strong fight against one part of the utility’s request. Additionally, this dispute puts a direct spotlight on the deepening reliability debate inside Oklahoma Energy.
The Petroleum Alliance of Oklahoma was among those who joined the Settlement agreement in support of the controversial request which could result in higher utility bills while ratepayers wait to see the end result of the utility’s projects. But it wasn’t a full-100% support for the Construction Work in Progress request now being weighed by Corporation Commissioners following a Wednesday meeting. As it turns out, the Petroleum Alliance is strongly opposed to OGE’s Black Kettle battery project proposed at Enid.
Alliance supports most generation projects — but draws a line at battery storage
The Alliance joined the Attorney General and the Public Utility Division of the corporation commission in supporting most of the energy projects. But when it came to Black Kettle, there was no support from the oil and gas group.
“The proposed utilization of the Black Kettle CPA (Capacity Purchase Agreement) would simply add more losses and burden on ratepayers. The Commission has an obligation to stop digging the hole for the ratepayer that has been associated with wind and solar assets,” argued the Alliance in a filing with the corporation commission.
Additionally, this objection aligns directly with the resource reliability argument many oil and gas advocates now make against high concentration wind and battery additions.
Alliance challenges renewable reliability and dispatch risk
The oil and gas group said the proposed agreement would be “too costly” for the benefit received and claimed that energy from the project would also not always be available when needed.
“Wind and solar projects have already left the ratepayer, the taxpayer and the State of Oklahoma holding a significant cost for unreliable generating assets and their associated infrastructure. To underscore this point, the real-world unreliability of such assets has recently been realized here in Oklahoma,” maintained the Alliance as it noted the Southwest Power Pool, in the last four months alone, issued several resources advisories related to “the instability of wind energy and the associated lack of generation.”
The Alliance further claimed that battery storage at the electric utility level is relatively new, “is not actual electric generation, and has the potential for significant dangers and should not be entered into lightly.”
Black Kettle is one piece of OGE’s broader generation plan
The Black Kettle project is among several new electric generation improvements that OGE wants to make and have ratepayers finance the effort while construction is underway.
OGE asked for preapproval to cover a 5-year Capacity Purchase Agreement with Tenaska’s Kiamichi Energy Plant in Kiowa; a 20-year agreement for power from the Black Kettle Energy Storage in Oklahoma City; and the addition of two new gas-fired combustion turbines at a cost of $506.4 million at its Horseshoe Lake power plant in eastern Oklahoma County.
Additionally, this stacking of resource requests shows OGE intends to mix dispatchable natural gas with battery storage, placing Oklahoma Energy regulators in the position of weighing both reliability risk and cost pass throughs simultaneously.
CWIP enabled by SB998 — now pushing first legal boundaries
While CWIP funding is allowed through a new law created by SB998, a measure that did not have the signature of Gov. Kevin Stitt, it was designed to impact projects involving natural gas. The same authors of the law also filed another measure, House Bill 2756.
It created the High Voltage Electric Transmission Facility Act, which took effect on May 29, 2025, and is now codified at 17 O.S. §§ 850 – 851. The Act requires transmission developers to file an application to obtain a certificate of authority from the Corporation Commission for each electric transmission facility prior to commencing such facilities.
OGE became the first utility to take advantage of the Act and noted so in a filing with the corporation commission.
“Applicant recognizes its Application is the first of its kind for which the OCC is still developing procedures,” according to the filing by Black Kettle attorneys who also represent NextEra Energy efforts in Oklahoma.
“While there is some question whether the Act was intended to address short electric interconnection lines such as this one, Applicant nonetheless submits this Application out of an abundance of caution.”
Final call now sits with Corporation Commission
Oklahoma regulators delayed a decision on the CWIP request after Corporation Commissioner Brian Bingman called for a denial of the request. The three commissioners will meet again on Thursday, November 13.