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Oklahoma Legislature· HB 1227Second Reading referred to Rules

An act relating to utilities, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                   STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1227               By: West (Kevin)

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6                   AS INTRODUCED

7   An Act relating to utilities; amending 17 O.S. 2021,

    Section 158.25, as amended by Section 1, Chapter 95,

8   O.S.L. 2023 (17 O.S. Supp. 2024, Section 158.25),

    which relates to exclusive rights within territory;

9   requiring certain retail electric suppliers submit

    certain annual report; requiring the promulgation of

10  certain rules; and providing an effective date.

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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

14  SECTION 1.      AMENDATORY  17 O.S. 2021, Section 158.25, as

15 amended by Section 1, Chapter 95, O.S.L. 2023 (17 O.S. Supp. 2024,

16 Section 158.25), is amended to read as follows:

17  Section 158.25. A. Except as otherwise provided herein, each

18 retail electric supplier shall have the exclusive right to furnish

19 retail electric service to all electric-consuming facilities located

20 within its certified territory, and shall not furnish, make

21 available, render or extend its retail electric service to a

22 consumer for use in electric-consuming facilities located within the

23 certified territory of another retail electric supplier; provided

24 that any retail electric supplier may extend its facilities through

    Req. No. 10560                                               Page 1
1 the certified territory of another retail electric supplier, if such

2 extension is necessary for such supplier to connect any of its

3 facilities or to serve its consumers within its own certified

4 territory.

5   B. Except as provided in subsections C and E of this section,

6 any new electric-consuming facility located in an unincorporated

7 area which has not as yet been included in a map issued by the

8 Commission, pursuant to Section 158.24 of this title, or certified,

9 pursuant to Section 158.24 of this title, shall be furnished retail

10 electric service by the retail electric supplier which has an

11 existing distribution line in closer proximity to such electric-

12 consuming facility than is the nearest existing distribution line of

13 any other retail electric supplier. Any disputes under this

14 subsection shall be resolved by the Commission.

15  C. If the Commission, after hearing, shall determine that the

16 retail electric service being furnished or proposed to be furnished

17 by a retail electric supplier to an electric-consuming facility is

18 inadequate and is not likely to be made adequate, the Commission may

19 authorize another retail electric supplier to furnish retail

20 electric service to such facility.

21  D. Except as provided in subsection C of this section, no

22 retail electric supplier shall furnish, make available, render or

23 extend retail electric service to any electric-consuming facility to

24 which such service is being lawfully furnished by another retail

    Req. No. 10560                                                Page 2
1 electric supplier on September 10, 1971, or to which retail electric

2 service is lawfully commenced thereafter in accordance with this

3 section by another retail electric supplier.

4   E. The provisions of this act shall not preclude any retail

5 electric supplier from extending its service after September 10,

6 1971, (1) to its own property and facilities, in an unincorporated

7 area, and (2) subject to subsection D of this section, to an

8 electric-consuming facility requiring electric service, in an

9 unincorporated area, if the connected load for initial full

10 operation of such electric-consuming facility is to be 1,000 kw or

11 larger.

12  F. To achieve the purposes of efficient, cost-effective retail

13 electric service without duplication of electric facilities and to

14 avoid unfairly shifting costs to residential consumers, retail

15 electric service providers are required to establish and utilize

16 rate tariffs which are specifically applicable to a rate class of

17 customers composed of electric consuming facilities being served in

18 accord with the 1,000 kw size exception found in subsection E of

19 this section and located outside the retail electric service

20 provider's certified territory. These tariffs may be for a specific

21 electric consuming facility or for a class of electric consuming

22 facilities taking service under this provision. For retail electric

23 service providers that are rate-regulated by the Commission, the

24 rates supporting this rate class shall be determined in the rate-

    Req. No. 10560                                                 Page 3
1 regulated service provider's most recent rate proceeding. Rates for

2 this rate class shall be designed to recover (i) the costs of

3 extending service to the competitive load of electric consuming

4 facilities of 1,000 kw or larger located outside the retail electric

5 service provider's certified territory; and (ii) the allocated share

6 of other costs associated with providing service to the electric

7 consuming facility. Such tariffs shall be cost-of-service based and

8 shall not subsidize other rate classes or be subsidized by other

9 rate classes. Unless costs of extending service to such a new load

10 are collected from the customer, those costs shall be included in

11 the cost of service study in the next rate proceeding. If the

12 electric service provider, in whose certified territory the

13 competitive load is seeking electric service, chooses in writing not

14 to compete for said competitive load or does not respond within

15 thirty (30) days of receiving written notice by the customer, the

16 terms of this subsection shall not apply.

17  G. Each retail electric service provider extending service to

18 an electric consuming facility pursuant to subsection F of this

19 section shall, on or before January 31 each calendar year, submit a

20 comprehensive report to the Corporation Commission that demonstrates

21 compliance that the tariffs assessed pursuant to subsection F of

22 this section are cost-of-service based and are not subsidizing other

23 rate classes or being subsidized by other rate classes. The

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    Req. No. 10560                                                  Page 4
1 Commission shall promulgate rules as to what data or information

2 retail electric providers shall provide in the annual report.

3   SECTION 2. This act shall become effective November 1, 2025.

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5   60-1-10560      JBH  01/03/25

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    Req. No. 10560                                               Page 5
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