Public utilities; electricity; alternatives; rates; deferrals reviews by Corporation Commission; assets; facilities; right of ways; emergency.
HB2747 makes a broad set of changes to Oklahoma utility law governing electric utilities regulated by the Corporation Commission. It expands and clarifies when certain utility costs are presumed recoverable, including transmission upgrade costs, environmental compliance capital expenditures, and costs tied to new generation or long-term power purchases. The bill also authorizes utilities to seek Commission approval for new electric generating facilities or purchased power arrangements, requires consideration of reasonable alternatives, and creates a special, more expedited review process for natural-gas-fired generation projects.
The bill further establishes a new deferred accounting mechanism beginning July 1, 2025, under which a qualifying public utility may defer 90% of depreciation expense and return associated with certain plant additions since the last general rate case, excluding transmission facilities and new generating units. Those deferred balances would later be reviewed by the Commission and, if included in rate base, recovered over a 20-year amortization period. HB2747 also directs the Commission to oversee development of new high-voltage transmission lines in Southwest Power Pool plans, sets competitive bidding and independent evaluation requirements for certain transmission projects, and prohibits rate-regulated retail electric suppliers from using ratepayer-funded incentives to encourage customers to switch from natural gas to electricity.
HB2747 would amend existing Title 17 utility provisions and add new sections governing rate recovery, deferred assets, generation planning, transmission development, and customer incentives. It would affect electric utilities subject to Corporation Commission rate regulation, the Commission itself, the Attorney General, and retail electric consumers by changing how utility investments and related costs can be recovered in rates. It also creates new restrictions on ratepayer-funded fuel-switching incentives and preserves certain rights of incumbent transmission owners and transmission developers under related law.
The bill appears to have received generally favorable support in committee and on the House floor, passing the Utilities Committee 8-2, the Energy and Natural Resources Oversight Committee 13-2, and the House third reading 68-28. That pattern suggests broad but not unanimous support, with the measure advancing as a significant utility policy package. The emergency clause indicates proponents viewed the bill as needing immediate effect.
The main points of contention likely involve cost recovery and ratepayer impacts, especially the bill’s presumption that many utility costs are recoverable and its new deferred accounting and rate-base treatment for plant investments. Another likely area of dispute is the special treatment for natural-gas-fired generation, including accelerated Commission review, construction work in progress recovery, and mandatory refunds if a project is abandoned. Transmission policy is also potentially contentious, because the bill expands Commission authority over high-voltage lines while preserving incumbent rights and allowing transmission developers to bid, which may raise concerns among utilities, cooperatives, developers, and consumer advocates about competition, control of rights-of-way, and who bears the costs.