OCC Division Seeks Independent Oversight of OG&E Bidding Process
A division of the Oklahoma Corporation Commission wants to closely monitor Oklahoma Gas and Electric Company’s competitive bidding in its growing electric generation projects. It is not considered an unusual move but simply another tool in making sure consumers have a watchdog on their side.
The Public Utility Division Director Mark Argenbright filed the request which will be reviewed by the three Corporation Commissioners. He seeks authority to hire an independent evaluator “to monitor the request for proposals (“RFP”) and competitive bidding process for Oklahoma Gas and Electric Company’s (“OG&E”) 2026 All Source RFP.”
OG&E 2026 All Source RFP Triggers Request
The utility company filed a notice last week of its intent to issue the 2026 All Source RFP, a move that prompted Argenbright to make his request of the Commissioners.
In the motion, Argenbright said statute allows the hiring of an Independent Evaluator “when an affiliate of the utility is anticipated to participate in the competitive bidding process” and when the bid results are “expected to have a material impact on the utility’s cost of providing electricity to its customers.”
Argenbright explained that OG&E stated that it intends to self-bid into the RFP.
Background: Prior OG&E Project Approvals
The bidding process was part of the argument raised late last year as the Corporation Commission eventually approved, on a 2–1 vote, preapproval of expanded electricity projects pursued by OG&E.
The selection of bids for OG&E’s Horseshoe Lake natural gas power plant in eastern Oklahoma County was an issue raised by Commissioner Todd Hiett and consumer groups Oklahoma Industrial Energy Consumers and Oklahoma AARP.
Commissioner Hiett Raises Cost Concerns
Commissioner Hiett agreed with OIEC and AARP, who asked the commission to reconsider the fact that the self-construction bid chosen by OG&E for the project ranked 26th “by OG&E’s own evaluation” among the bids submitted.
Hiett stated the decision would require ratepayers to bear millions more in costs.
Consumer Groups Object to Bid Selection
The groups argued that OG&E did not select the lowest reasonable cost resources when it selected the Horseshoe Lake Units 13 and 14 and the Kiamichi five-year bid.
“The final order authorizes OG&E’s acquisition of Horseshoe Lake and the Kiamichi offer, despite the fact that the selection of those resources will not result in electric rates that are fair and just and reasonable,” said Tom Schroedter, executive director of Oklahoma Industrial Energy Consumers. “They will not result in electric rates that are the lowest reasonable cost for Oklahoma ratepayers.”
AARP Warns of Ratepayer Impact
AARP Oklahoma state director Sean Voskuhl was equally adamant about the bidding process and the impact it will have on ratepayers, saying it “will saddle OG&E’s residential customers and businesses with tens of millions of dollars in excessive costs.”
“The commission’s order lacks customer protections and will result in substantially higher electric bills,” Voskuhl said. “Oklahoma ratepayers, especially those on fixed incomes, are struggling with these continuous rate hikes with no end in sight.”