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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1766 By: McIntosh
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6 AS INTRODUCED
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7 An Act relating to the Corporation Commission;
7 defining terms; requiring certain consideration;
8 establishing criteria for certain petition; requiring
8 establishment of certain evidence; requiring the
9 Corporation Commission to make certain finding;
9 establishing requirements for certain approval;
10 construing provision; clarifying applicability;
10 providing for codification; and providing an
11 effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 295 of Title 17, unless there is
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17 created a duplication in numbering, reads as follows:
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18 A. As used in this section:
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19 1. "Bulk-power system" means:
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20 a. facilities and control systems necessary to operate an
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21 interconnected electricity energy transmission network
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22 or portion thereof, and
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23 b. electric energy from generation facilities needed to
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24 maintain transmission system reliability;
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Req. No. 3551 Page 1
1 2. "Capacity" means the fraction of the installed capacity of
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2 an electric generation unit which can be relied on at a given time
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3 to meet demand and is frequently measured either in terms of the
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4 physical output capacity of the unit such as kilowatt (kW), megawatt
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5 (MW), or gigawatt (GW) or as the fractional output percentage of the
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6 asset's nameplate capacity;
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7 3. "Effective load or demand carrying capacity" means an
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8 electric generation unit's contribution to reliability based on the
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9 incremental quantity of load or demand that can be satisfied by
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10 adding that resource asset to the electric power grid;
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11 4. "Electric generation unit" means any asset used to generate
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12 or store electricity, regardless of fuel source including, but not
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13 limited to, coal, natural gas, nuclear fuel, hydroelectricity,
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14 geothermal, wind, solar, hydrogen, or other applicable technologies.
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15 It shall include, but is not limited to, pumped hydroelectric
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16 storage, lithium-ion batteries, and any other device or asset used
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17 to store energy for later use as electricity;
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18 5. "Electric utility" means any person, firm, partnership, or
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19 corporation that furnishes retail electric service to the public in
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20 this state and is subject to the regulatory jurisdiction of the
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21 Corporation Commission;
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22 6. "Independent system operator" means a regional transmission
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23 organization, independent system operator, independent transmission
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24 provider, or other transmission organization finally approved by the
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Req. No. 3551 Page 2
1 Federal Energy Regulatory Commission for the operation of
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2 transmission facilities;
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3 7. "Reliability" means a requirement, approved by the Federal
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4 Energy Regulatory Commission, to provide for reliable operation of
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5 the bulk-power system. It includes requirements for the operation
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6 of existing bulk-power system facilities, including cybersecurity
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7 protection, and the design of planned additions or modifications to
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8 such facilities to the extent necessary to provide for reliable
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9 operation of the bulk-power system. It does not include any
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10 requirement to enlarge such facilities or to construct new
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11 transmission capacity or generation capacity;
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12 8. "Reliable operation" means operating the elements of the
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13 bulk-power system within equipment and electric system thermal,
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14 voltage, and stability limits so that instability, uncontrolled
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15 separation, or cascading failures of such system will not occur as a
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16 result of a sudden disturbance, including a cybersecurity incident,
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17 or unanticipated failure of system elements;
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18 9. "Retire" means any scale down, scale back, intent for lesser
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19 usage, or any other similar action with respect to an electric
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20 generation unit or a transmission asset;
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21 10. "Transmission asset" means any and all equipment necessary
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22 to transmit electricity from a new or existing electric generation
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23 unit to the distribution network used to provide electricity to an
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24 end consumer. It includes, but is not limited to, any and all
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Req. No. 3551 Page 3
1 substations, inverters, transformers, transmission towers, and
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2 additional transmission mileage operating above sixty-nine kilovolts
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3 (69 kV); and
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4 11. "Transmission organization" means a regional transmission
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5 organization, independent system operator, independent transmission
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6 provider, or other transmission organization finally approved by the
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7 Federal Energy Regulatory Commission for the operation of
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8 transmission facilities.
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9 B. When a public utility requests a rate adjustment, the
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10 Corporation Commission shall take into consideration the bulk-power
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11 system reliability, energy capacity, on-demand dispatch ability,
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12 useful life, intermittent operational nature, overall operational
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13 costs including back end disposal costs, and environmental
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14 compliance costs of each and every asset used for the production or
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15 transmission of electric energy including, but not limited to, any
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16 electric generation unit, transmission asset, and other related
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17 assets in its determination of whether the costs and expenses of
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18 related costs and expenses are fair, just, reasonable, and should be
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19 approved for rate recovery.
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20 C. In addition to the requirements of a petition requesting the
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21 Commission to examine and determine the reasonableness of a proposed
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22 increase in rates and charges pursuant to Section 152 of Title 17 of
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23 the Oklahoma Statutes, the petition shall include the following:
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1 1. A statement for each electric generation unit that is
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2 proposed to be added to the generation portfolio which shall
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3 include:
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4 a. an evaluation of each generation unit's potential
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5 ability to reliably meet the applicant's capacity
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6 contributions to bulk-power system reliability during
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7 times of peak demand,
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8 b. an assessment of the potential estimated percentage
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9 contribution of each generation unit in meeting the
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10 applicant's capacity contributions to bulk-power
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11 system reliability during times of peak demand, and
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12 c. a narrative that outlines the addition of each
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13 electric generation unit when considered in
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14 conjunction with any proposed retirement with respect
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15 to any other electric generation and how this will
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16 impact the applicant's ability to meet capacity
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17 contributions to bulk-power system reliability during
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18 times of peak demand;
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19 2. A statement for each electric generation unit that the
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20 applicant proposes to retire which shall include:
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21 a. an evaluation of each generation unit's current
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22 ability to reliably meet the electric utility's
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23 capacity contributions to bulk-power system
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24 reliability during times of peak demand,
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Req. No. 3551 Page 5
1 b. an assessment of the current estimated percentage
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2 contribution of each generation unit in meeting the
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3 applicant's capacity contributions to bulk-power
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4 system reliability during times of peak demand, and
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5 c. a narrative that outlines how the scale down, less
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6 frequent utilization, retirement, or removal of each
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7 generation unit from the applicant's portfolio when
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8 considered in conjunction with any proposed addition
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9 of an electric generation unit to the applicant's
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10 portfolio will impact the applicant's ability to meet
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11 its capacity contributions to bulk-power system
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12 reliability during times of peak demand.
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13 The statements in each of paragraphs 1 and 2 of this subsection
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14 shall, to the best of the applicant's ability, address the effective
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15 load carrying capacity or effective demand carrying capacity of the
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16 electric generation unit. Such information may be indicated as the
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17 unforced or accredited capacity of the asset and the statement may
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18 be provided by a transmission organization, the applicant, or an
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19 agent thereof;
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20 3. A statement for each transmission asset the applicant
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21 proposes to build or acquire that includes an evaluation of each
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22 transmission asset's ability to meet its capability to support the
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23 applicant's capacity contributions to bulk-power system reliability
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24 during times of peak demand. The statement shall, to the best of
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Req. No. 3551 Page 6
1 the applicant's ability, address how the transmission asset will
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2 support the applicant's capacity contributions to bulk-power system
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3 reliability during times of peak demand. Such statement may be
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4 provided by a transmission organization, the applicant, or an agent
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5 thereof; and
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6 4. A statement for each transmission asset the applicant
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7 proposes to retire that includes an evaluation of each transmission
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8 asset's current ability to meet its capability to support the
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9 applicant's capacity contributions to bulk-power system reliability
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10 during times of peak demand. Such statement may be provided by a
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11 transmission organization, the applicant, or an agent thereof.
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12 D. 1. The Corporation Commission shall not authorize or
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13 approve the retirement of an electric generation unit in this state
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14 until the applicant establishes, by clear and convincing evidence,
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15 that it has available an equivalent megawatt capacity of
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16 dispatchable firm power generation as replacement power in the
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17 result of the proposed electric generation unit retirement. The
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18 available megawatt capacity of dispatchable firm power may be
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19 established by:
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20 a. the construction and operation of a new generation
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21 asset either within this state or outside this state,
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22 b. any purchase power agreement, or
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23 c. any other arrangement, including a combination of
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24 subparagraphs a and b of this paragraph, that the
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Req. No. 3551 Page 7
1 Commission determines will meet the applicant's
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2 capacity contributions to bulk-power system
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3 reliability during times of peak demand.
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4 2. The Corporation Commission may direct an electric utility to
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5 submit an analysis of the actions necessary to extend the life of
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6 each generating unit in the electric utility's portfolio beyond the
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7 planned retirement date for each generating unit. Such analysis may
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8 include any matters as deemed necessary by the Commission.
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9 E. Any applicant for an adjustment of electric utility rates
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10 shall establish by clear and convincing evidence that:
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11 1. Each electric generation unit or transmission asset that it
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12 proposes to build or acquire shall fully meet its capacity
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13 contributions to bulk-power system reliability during times of peak
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14 demand; and
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15 2. Each electric generation unit or transmission asset that it
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16 proposes to retire will not negatively impact the applicant's
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17 ability to fully meet its capacity contributions to bulk-power
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18 system reliability during times of peak demand.
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19 F. 1. If the Corporation Commission approves an adjustment of
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20 rates, it shall include in a separate finding that the applicant
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21 meets the requirements pursuant to this section.
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22 2. If the Commission finds that an electric generation unit or
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23 transmission asset that the applicant proposes to build or acquire
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24 fails to meet the requirements of this section, the Commission shall
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Req. No. 3551 Page 8
1 determine what portion, if any, of the costs and expenses related to
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2 and associated with that electric generation unit or transmission
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3 asset are fair, just, and reasonable, and should be eligible for
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4 rate recovery as well as the portion, if any, of the costs and
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5 expenses that are not fair, just, or reasonable, and should not be
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6 eligible for rate recovery.
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7 3. The Commission, in its discretion, may approve in part, deny
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8 in part, approve, or deny any portion of an applicant's petition.
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9 4. In any order approving an adjustment of rates, the
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10 Commission shall include in a separate and distinct paragraph in
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11 boldface type for each of the following that describes:
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12 a. the total dollar amount of the increase in approved
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13 rate recovery,
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14 b. whether a rate of return on any electric generation
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15 unit or transmission asset has been approved, the
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16 amount of the rate of return reflected as a percentage
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17 of the total dollar amount approved for such return
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18 and the duration of such return, and
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19 c. a summary of the total amount of the electric
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20 generation unit and transmission asset costs and
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21 expenses, if any, that have been denied for rate
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22 recovery.
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23 G. Nothing in this section shall be construed to require the
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24 disclosure of confidential information.
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1 H. Any agreed order of settlement or similar instrument among
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2 the parties shall not circumvent the requirements of this section or
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3 any other applicable law and shall not abrogate the responsibility
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4 of the Commission to make the findings pursuant to subsection F of
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5 this section.
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6 SECTION 2. This act shall become effective November 1, 2026.
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8 60-2-3551 CN 1/14/2026 3:20:18 PM
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Req. No. 3551 Page 10Every fact on this page links to its source, starting with the official bill record.