Hearings conclude into PSO’s $1.2 billion in CWIP projects

  • February 23, 2026

work in progress with a hardhat
After three days of six separate hearings into the $1.255 billion energy expansion projects of Public Service Company of Oklahoma, the case is under consideration by a Corporation Commission judge. It’s a critical case because the cost would be borne by customers of PSO and they will be paying for the projects eve as construction is underway.
Administrative Law Judge Carly M. Ortel wrapped up the final day of hearings last week and will make recommendations to the three corporation commissioners on the utility’s request for preapproval of the costs and the use of the controversial law allowing Construction Work in Progress, known as CWIP. The judge monitored cross examinations of witnesses beginning on February 17 where two hearings were held; Wednesday, February 18 for two more hearings and Thursday, February 19 for two more hearings.
PSO originally filed its request (2025-000064) last September
and requested permission to bill its customers for construction work in progress (CWIP) on eight projects that would produce 1,299 megawatts of electricity.
The request covered three battery energy storage systems known as BESS, three purchased power agreements called PPAs, a capacity purchase agreement or CPA with an existing natural gas-fired power plant, and a self-build natural gas combustion turbine purchased power and sale agreement called a PSA.
The utility, based in Tulsa, wants ratepayers and customers to pay for the eight projects which it wants to phase in from 2026 to 2029 starting with three wind purchase power agreements and a capacity purchase agreement in 2026-27. The three BESS projects would enter production or service in 2028 while the Northeastern Units 5 and 6 gas project would be finished in 2029.
PSO’s request is opposed by the Oklahoma Industrial Energy Consumers led by attorney Tom Schroedter who grilled PSO witness Rebecca Schwartz, Director, Regulatory Pricing and
Analysis, in the Regulatory Services Department for American Electric Power Service Corporation (AEPSC). AEPSC is a wholly-owned subsidiary of American Electric Power Company, Inc. (AEP). AEP is the parent company of Public Service Company
of Oklahoma (PSO or the Company).
“So would you agree with me that PSO rate payers will be paying for financing of the construction of natural gas combustion CTs when they are not providing electricity to PSO or rate payers? “he asked during the final hearing on Thursday. ““Do you think it is fair to ratepayers that CWIP recovery is granted without regard to financial necessity, prudence, or fairness to ratepayers?”
“I think through the rider will benefit customers because it will lower the overall total project cost to all customers,” answered Schwartz.
Schroedter contends a lawsuit that has stalled construction in Rogers County District Court could delay work until possibly the end of the year.
“So it’s possible that the District Court of Rogers County, Oklahoma will be like other courts, they’re busy,  and they might not render a decision until the end of this year. But what I’m asking you is, is it PSO’s intent to recover construction work in progress despite the fact that it can’t proceed and build Northeastern 5 and 6? “

If the regulators approve the PSO request, its 580,000 customers will be paying at least another $25 more a month.

“If approved as filed, the average residential customer using 1,100 kWh per month would experience an increase of about $25, or 15%, by July 2026. PSO continues offering programs such as our average monthly payment plan, PowerPay, energy efficiency resources, and bill assistance to help manage costs and keep energy affordable,” stated PSO in its original application.

“PSO understands affordability matters for every family and business it serves. Through smarter grid investments, energy efficiency programs, and bill payment assistance, PSO remains committed to delivering long term value and supporting communities,” it claimed.

The utility also claimed that as part of the review, it proposed  new special terms and conditions for new large customers to ensure they pay full costs to connect to the grid as Oklahoma attracts major investment and economic growth. These new terms prevent cost shifting and maintain grid reliability, while enabling PSO to serve new large loads responsibly and sustainably, according to the company.

Jerry Bohnen