Oklahoma Gas and Electric Company’s latest request of state regulators could mean eventually higher rates for its customers. How much isn’t clear but the state’s regulatory agency has been given a heads-up.
It concerns the utility’s move to start taking bids on natural gas storage. Details were not made available but Mark Argenbright, Director of the Public Utility Division at the Oklahoma Corporation Commission is asking permission to hire a special Independent Evaluator to be used in the case.
“On March 3, 2026, OG&E informed PUD via e-mail of the Company’s intent to issue a multi-year RFP for natural gas storage. OG&E informed PUD that the draft RFP is scheduled for release on April 6, 2026, aiming to finalize bid(s) selection by the end of June 2026 and contract execution by the end of July 2026,” stated Argenbright in his request to state regulators.
He went on to explain the email from OG&E stated that the utility anticipates “that the resulting bid is expected to have a material impact on the utility’s cost of providing electricity to customers
and, therefore, OG&E recommended PUD retain an Independent Evaluator pursuant,” in compliance with commission rules.
Argenbright’s request also indicated that if an evaluator is approved, the costs in monitoring OG&E’s “competitive bidding process” would be recovered by the utility.
“PUD requests that if an Independent Evaluator is retained, OG&E be allowed to recover all costs incurred for the Independent Evaluator from customers, with the manner of cost
recovery to be determined in its next base rate case.”
In its 2025 Integrated Resource Plan, Oklahoma Gas and Electric referred to a 2022 expansion of its physical hedging of natural gas “by expanding its natural gas storage services and implementing monthly gas contracts that increase price surety for customers.” It explained the surety contracts included fixed price, call options, first-of-month pricing and call cap options which were to help provide “a measurable increase in both price and volume surety.” OG&E said it would reduce exposure to volatility often seen in the natural gas market.