Regulators to handle challenges to CWIP requests by OGE

  • January 24, 2026

The fight over Construction Work in Progress attempts of Oklahoma Gas and Electric to have consumers pay for expanded energy generation projects while they’re being built is far from finished with Oklahoma regulators.
The Oklahoma Corporation Commission will meet Tuesday and the agency will deal with OGE’s continued efforts to obtain CWIP approval for the expanded generation project at its Horseshoe Lake Power Plant in eastern Oklahoma County.
The utility not only faces opposition from two consumer groups but also from the Commission’s own Public Utilities Division. OG&E filed an application in early December for CWIP recovery for the construction of new natural gas generation capacity at the Horseshoe Lake Units 13 & 14. More than a month later on January 20 of this year, PUD filed a motion to dismiss the utility’s application.
Mark Argenbright, Director of the Public Utility Division, in his filing contended in his filing that OG&E was attempting to “leapfrog” over foundational requirements and proceed directly to CWIP recovery.
The utility made its original request for approval of expanded electrical generation projects in May of 2025, then refiled the request after the controversial measure, SB998, was approved by the legislature and became law at the end of August. SB998 created CWIP use but only if natural gas was involved in the project.
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At the time, OG&E sought preapproval from Corporation Commissioners 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.
In November, regulators voted for preapproval but not CWIP, as Argenbright noted in his request.
“On November 14, 2025, the Commission entered Order No. 753440, granting preapproval for the construction of the HL 13 & 14 facilities while explicitly stating: “The Commission specifically rejects OG&E’s CWIP request in this case.” ¶17. In rejecting CWIP
recovery, the Commission rejected OG&E’s argument that the newly amended Section 286(C) represented an exception to the general retroactivity rules applicable to statutes in Oklahoma.”
Joining Argenbright in opposing the CWIP application were the OIEC and AARP, and they made the same argument as the PUD Director.
“The Commission found that the amendment (to the new law) which became effective on August 28, 2025, did not apply to OG&E’s Application because OG&E’s Application was filed prior to the effective date of the amendment.”
They also pointed out that following the Commission’s decision in November of 2025, no appeal was filed within 30 days of the entry of the order, “Thus, the Final Order is now unappealable and unassailable.”
OIEC and AARP contended in their dismissal motion that the state law now does not authorize a separate application for recovery of CWIP expense, “divorced from the preapproval of the facilities.” They also pointed out the Final Order for preapproval provides for cost recovery of the construction at the plant “using the AFUDC method” which as defined  as “Allowance for Funds Used During Construction (AFUDC) is a method used by regulated utilities to capitalize financing costs—both debt and equity—on funds used for construction projects.”
Attorneys for the consumer groups say it means the financing costs will be collected from ratepayers “after” Horseshoe Lake Units 13 and 14 are built and OG&E’s application “seeking CWIP cost recovery for the Horseshoe Lake Units 13 and 14 should be dismissed.”
Constitutional questions about the new law were raised before it formally became law and one of those who broached the subject with the commission was OIEC Director Thomas Schroedter. He told commissioners in mid-August, ““It’s legally deficient and conflicts and violates other articles in the constitution.” Commission Chair Kim David agreed and “questioned it as well.”
Commissioners recently held a closed-door discussion and SB998 was the subject for part of the meeting,  but details were not revealed in the form filed last week. Since Schroedter’s August discussion regarding constitutionality, no such challenge has been made with the Supreme Court.
Below is the full agenda for the 1:30 p.m. meeting.

AGENDA
Item Topic

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. Consideration of and possible vote(s) on proposed or potential orders in cases on attached 24-hour 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 24-hour signing agenda docket as a whole, or both by individual cases and the remaining docket.)

IV. Case No. PUD2025-000082, In the Matter of the Application of Oklahoma Gas and Electric Company for Rider Cost Recovery of Construction Work in Progress for New Natural Gas Generation Capacity Horseshoe Lake Units 13 & 14 Pursuant to 17 O.S. § 286(C), for discussion, possible hearing, and possible vote(s) on: A. Motion to Advance Oklahoma Industrial Energy Consumers (OIEC) and AARP’s
Joint Motion to Dismiss, and Motion to Advance the Public Utility Division’s
(PUD) Motion to Dismiss

B. OIEC and AARP’s Motion to Dismiss, and PUD’s Motion to Dismiss Oklahoma Gas and Electric Company’s (OG&E) Application for Construction Work in Progress Cost Recovery for “New” Natural Gas Generation Capacity Horseshoe Lake Units 13 & 14 and Brief in Support C. Motions to Advance OG&E’s Motion for Procedural Order OG&E’s Motion to Determine Notice Requirements and Approve Form of Notice

D. OG&E’s Motion for Procedural Order and Motion to Determine Notice Requirements and Approve Form of Notice

V. New business
A. Any matter not known about and which could not have been reasonably foreseen 24 hours before the meeting
B. Possible vote(s) on matters of new business

VI. Adjournment

 

BEFORE THE CORPORATION COMMISSION OF THE STATE OF
OKLAHOMA DAILY SIGNING AGENDA (PROPOSED ORDERS)
Date: Tuesday, January 27, 2026

Case Number CD2024-001703 Order Type Dismissal Order RSO OKC
Parties CASILLAS PETROLEUM RESOURCE
PARTNERS LLC (Applicant)
Relief Type(s) Multi-unit horizontal well
1st Legal Loc./County S2 T4N R5W / Grady
Order Title ORDER OF THE COMMISSION
DISMISSING CAUSE

Case Number CD2024-001704 Order Type Dismissal Order RSO OKC
Parties CASILLAS PETROLEUM RESOURCE
PARTNERS LLC (Applicant)
Relief Type(s) Multi-unit horizontal well
1st Legal Loc./County S2 T4N R5W / Grady
Order Title ORDER OF THE COMMISSION
DISMISSING CAUSE

Case Number CD2024-001706 Order Type Dismissal Order RSO OKC
Parties CASILLAS PETROLEUM RESOURCE
PARTNERS LLC (Applicant)
Relief Type(s) Location Exception
1st Legal Loc./County S2 T4N R5W / Grady
Order Title ORDER OF THE COMMISSION
DISMISSING CAUSE

Case Number CD2024-001708 Order Type Dismissal Order RSO OKC
Parties CASILLAS PETROLEUM RESOURCE
PARTNERS LLC (Applicant)
Relief Type(s) Increased well density
1st Legal Loc./County S11 T4N R5W / Grady
Order Title ORDER OF THE COMMISSION
DISMISSING CAUSE

Case Number CD2024-001709 Order Type Dismissal Order RSO OKC
Parties CASILLAS PETROLEUM RESOURCE
PARTNERS LLC (Applicant)
Relief Type(s) Increased well density
1st Legal Loc./County S14 T4N R5W / Grady
Order Title ORDER OF THE COMMISSION
DISMISSIMG CAUSE

Case Number CD2024-003491 Order Type Final RSO OKC
Parties DEVON ENERGY PRODUCTION COMPANY
LP (Applicant)
Relief Type(s) Multi-unit horizontal well
1st Legal Loc./County S18 T16N R10W / Blaine
Order Title ORDER OF THE COMMISSION

Case Number CD2024-003492 Order Type Final RSO OKC
Parties DEVON ENERGY PRODUCTION COMPANY
LP (Applicant)
Relief Type(s) Location Exception
1st Legal Loc./County S18 T16N R10W / Blaine
Order Title ORDER OF THE COMMISSION

Case Number CD2024-003493 Order Type Final RSO OKC
Parties DEVON ENERGY PRODUCTION COMPANY
LP (Applicant)
Relief Type(s) Multi-unit horizontal well
1st Legal Loc./County S18 T16N R10W / Blaine
Order Title ORDER OF THE COMMISSION

Case Number CD2024-003494 Order Type Final RSO OKC
Parties DEVON ENERGY PRODUCTION COMPANY
LP (Applicant)
Relief Type(s) Location Exception
1st Legal Loc./County S18 T16N R10W / Blaine
Order Title ORDER OF THE COMMISSION

Case Number CD2024-003984 Order Type Dismissal Order RSO TUL
Parties AXIA ENERGY III LLC (Applicant) Relief Type(s) Location Exception
1st Legal Loc./County S30 T21N R10W / Major
Order Title ORDER OF THE COMMISSION
DISMISSING CAUSE

Case Number CD2025-000795 Order Type Final RSO OKC
Parties CRAWLEY PETROLEUM CORPORATION
(Applicant)
Relief Type(s) Multi-unit horizontal well
1st Legal Loc./County S28 T15N R21W / Roger Mills
Order Title FINAL ORDER OF THE COMMISSION
MULTIUNIT HORIZONTAL WELL

Case Number CD2025-000796 Order Type Final RSO OKC
Parties CRAWLEY PETROLEUM CORPORATION
(Applicant)
Relief Type(s) Location Exception
1st Legal Loc./County S28 T15N R21W / Roger Mills
Order Title FINAL ORDER OF THE COMMISSION
HORIZONTAL WELL LOCATION
EXCEPTION

Case Number CD2025-000944 Order Type Dismissal Order RSO OKC
Parties OVINTIV USA INC (Applicant) Relief Type(s) Location Exception
1st Legal Loc./County S4 T17N R10W / Blaine
Order Title ORDER GRANTING ORAL MOTION TO
DISMISS

Case Number CD2025-001590 Order Type Motion RSO TUL
Parties NADEL AND GUSSMAN LLC (Applicant) |
VOGEL EXPLORATION LLC (Applicant)
Relief Type(s) Multi-unit horizontal well
1st Legal Loc./County S9 T13N R19W / Custer
Order Title ORDER GRANTING MOTION TO SET
CAUSE FOR HEARING

Case Number CD2025-001591 Order Type Motion RSO TUL
Parties NADEL AND GUSSMAN LLC (Applicant) |
VOGEL EXPLORATION LLC (Applicant)
Relief Type(s) Location Exception
1st Legal Loc./County S9 T13N R19W / Custer
Order Title ORDER GRANTING MOTION TO SET
CAUSE FOR HEARING

Case Number CD2025-001592 Order Type Motion RSO TUL
Parties NADEL AND GUSSMAN LLC (Applicant) |
VOGEL EXPLORATION LLC (Applicant)
Relief Type(s) Increased well density
1st Legal Loc./County S9 T13N R19W / Custer
Order Title ORDER GRANTING MOTION TO SET
CAUSE FOR HEARING

Case Number CD2025-002055 Order Type Interim RSO TUL
Parties VALIDUS ENERGY II MIDCON LLC
(Applicant)
Relief Type(s) Multi-unit horizontal well
1st Legal Loc./County S14 T12N R9W / Canadian
Order Title INTERIM ORDER OF THE COMMISSION
MULTIUNIT HORIZONTAL WELL

Case Number CD2025-002635 Order Type Final RSO TUL
Parties STAGHORN PETROLEUM II LLC (Applicant) Relief Type(s) Drilling and Spacing Unit
1st Legal Loc./County S14 T7N R5W / Grady
Order Title ORDER OF THE COMMISSION

Case Number CD2025-002945 Order Type Final RSO OKC
Parties CONTINENTAL RESOURCES INC (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S20 T9N R10W / Caddo
Order Title FINDINGS AND ORDER

Case Number CD2025-002947 Order Type Final RSO OKC
Parties CONTINENTAL RESOURCES INC (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S32 T9N R10W / Caddo
Order Title FINDINGS AND ORDER

Case Number CD2025-002976 Order Type Final RSO OKC
Parties CONTINENTAL RESOURCES INC (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S1 T9N R10W / Caddo
Order Title FINDINGS AND ORDER

Case Number CD2025-002977 Order Type Final RSO OKC
Parties CONTINENTAL RESOURCES INC (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S12 T9N R10W / Caddo
Order Title FINDINGS AND ORDER

Case Number CD2025-003560 Order Type Final RSO OKC
Parties THUNDERBIRD NATURAL RESOURCES
LLC (Applicant)
Relief Type(s) Pooling
1st Legal Loc./County S18 T11N R11W / Caddo
Order Title ORDER OF THE COMMISSION
POOLING

Case Number CD2025-003921 Order Type Final RSO TUL
Parties OVINTIV USA INC (Applicant) Relief Type(s) Increased well density
1st Legal Loc./County S24 T15N R9W / Kingfisher
Order Title FINAL ORDER OF THE COMMISSION
INCREASED DENSITY

Case Number CD2025-003922 Order Type Final RSO TUL
Parties OVINTIV USA INC (Applicant) Relief Type(s) Increased well density
1st Legal Loc./County S25 T15N R9W / Kingfisher
Order Title FINAL ORDER OF THE COMMISSION
INCREASED DENSITY

Case Number CD2025-003924 Order Type Final RSO TUL
Parties OVINTIV USA INC (Applicant) Relief Type(s) Increased well density
1st Legal Loc./County S36 T15N R9W / Kingfisher
Order Title FINAL ORDER OF THE COMMISSION
INCREASED DENSITY

Case Number CD2025-003965 Order Type Final RSO TUL
Parties MEWBOURNE OIL COMPANY (Applicant) Relief Type(s) Drilling and Spacing Unit
1st Legal Loc./County S23 T19N R21W / Ellis
Order Title REPORT OF THE COMMISSION

Case Number CD2025-003967 Order Type Final RSO TUL
Parties MEWBOURNE OIL COMPANY (Applicant) Relief Type(s) Drilling and Spacing Unit
1st Legal Loc./County S35 T19N R21W / Ellis
Order Title REPORT OF THE COMMISSION

Case Number CD2025-003979 Order Type Final RSO OKC
Parties UPLAND OPERATING LLC (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S9 T13N R24W / Roger Mills
Order Title ORDER OF THE COMMISSION

Case Number CD2025-003980 Order Type Final RSO OKC
Parties UPLAND OPERATING LLC (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S16 T13N R24W / Roger Mills
Order Title ORDER OF THE COMMISSION

Case Number CD2025-004065 Order Type Final RSO OKC
Parties VALIDUS ENERGY II MIDCON LLC
(Applicant)
Relief Type(s) Pooling
1st Legal Loc./County S19 T15N R13W / Blaine
Order Title ORDER OF THE COMMISSION
POOLING

Case Number CD2025-004088 Order Type Final RSO OKC
Parties MEWBOURNE OIL COMPANY (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S22 T17N R25W / Roger Mills
Order Title ORDER OF THE COMMISSION
POOLING

Case Number CD2025-004089 Order Type Final RSO OKC
Parties MEWBOURNE OIL COMPANY (Applicant) Relief Type(s) Pooling
1st Legal Loc./County S27 T17N R25W / Roger Mills
Order Title ORDER OF THE COMMISSION
POOLING

Case Number CD2025-004201 Order Type Final RSO TUL
Parties CALYX ENERGY III LLC (Applicant) Relief Type(s) Increased well density
1st Legal Loc./County S19 T7N R14E / Pittsburg
Order Title FINAL ORDER OF THE COMMISSION
INCREASED DENSITY

Case Number EN2025-000251 Order Type DMOA RSO OKC
Parties LANKFORD, JUSTIN (Applicant) |
CINOSWEATZ GROUP LLC (Respondent)
Relief Type(s) Contempt
1st Legal Loc./County
Order Title ORDER DISMISSING CASE

Case Number EN2025-000293 Order Type Interim RSO OKC
Parties HODGES, JEREMY (Applicant) | DUNKIN OIL
AND GAS LLC (Respondent)
Relief Type(s) Surety – Increase, Surety – Forfeit, Assess Fine
(s), Contempt
1st Legal Loc./County S36 T3N R2E / Garvin
Order Title INTERIM ORDER

Case Number EN2025-000310 Order Type Final RSO OKC
Parties HODGES, JEREMY (Applicant) | PEGG OIL,
LLC (Respondent)
Relief Type(s) Contempt, Assess Fine(s)
1st Legal Loc./County
Order Title FINAL ORDER

Case Number PD2014-000127 Order Type Final RSO OKC
Parties CHAPARRAL ENERGY LLC (Applicant) Relief Type(s) Other
1st Legal Loc./County S28 T1N R20E / Beaver
Order Title FINAL ORDER

Jerry Bohnen