PSO Seeks $3.2B Financing for Oklahoma Energy Projects
Public Service Company of Oklahoma (PSO) is asking the Oklahoma Corporation Commission for approval to raise up to $3.2 billion to help fund major energy expansion projects currently underway across the state.
Utility Plans Major Debt Offering
In a filing with regulators, PSO requested authority to enter into underwriting agreements to issue up to $3,250,000,000 through a combination of senior unsecured notes or unsecured promissory notes to its parent company, American Electric Power Company, Inc.
The proposed financing would include fixed or floating interest rate debt securities, giving the utility flexibility in how it structures the offering.
Builds on Previous Financing Approval
PSO noted it already has authority to issue $350 million from a previously approved $1.75 billion financing plan authorized by the Corporation Commission in April 2023.
If approved, the new request would replace the remaining authority under that earlier financing certificate.
Funds Target Debt, Construction, and Operations
According to the filing, proceeds from the debt issuance would be used for multiple purposes, including:
- Paying off maturing long-term debt
- Reducing short-term debt obligations
- Funding PSO’s ongoing construction program
- Replenishing working capital
- Supporting other corporate needs
PSO stated the proposed debt securities could have maturities of up to 60 years, reflecting a long-term strategy to support infrastructure investment and grid expansion.
Supports Growing Energy Demand in Oklahoma
The financing effort comes as utilities across the region face increasing demand tied to population growth, industrial expansion, and energy-intensive projects, including data centers and manufacturing.
The outcome of the Corporation Commission’s review will play a key role in determining how quickly PSO can move forward with its long-term energy development plans.