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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 610 By: Boren
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6 AS INTRODUCED
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7 An Act relating to the Corporation Commission;
7 amending 17 O.S. 2021, Section 286, which relates to
8 rate proceedings before the Commission; requiring
8 submission of information regarding certain
9 technology usage; and providing an effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 17 O.S. 2021, Section 286, is
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14 amended to read as follows:
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15 Section 286. A. 1. The portion of costs incurred by an
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16 electric utility, which is subject to rate regulation by the
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17 Corporation Commission, for transmission upgrades approved by a
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18 regional transmission organization to which the utility is a member
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19 and resulting from an order of a federal regulatory authority having
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20 legal jurisdiction over interstate regulation of transmission rates,
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21 shall be presumed recoverable by the utility. The presumption
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22 established in this paragraph may be rebutted by evidence that the
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23 costs so incurred by the utility for the transmission upgrades
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24 exceed the scope of the project authorized by the regional
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Req. No. 663 Page 1
1 transmission organization or order issued by the federal regulatory
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2 authority having jurisdiction over interstate regulation of
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3 transmission rates. The Commission shall transmit rules to
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4 implement the requirements of this subsection to the Legislature on
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5 or before April 1, 2006. The rules may authorize an electric
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6 utility to periodically adjust its rates to recover all or a portion
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7 of the costs so incurred by the utility for the transmission
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8 upgrades.
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9 2. Reasonable costs incurred by an electric utility for
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10 transmission upgrades:
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11 a. needed to develop wind generation in this state,
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12 b. approved by the Southwest Power Pool, and
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13 c. placed into service before December 31, 2013,
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14 shall be presumed recoverable through a periodic adjustment in the
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15 rates of the utility, provided that the presumption of the recovery
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16 of such costs or the recovery of such costs through a periodic
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17 adjustment in rates may be rebutted by evidence presented to the
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18 Commission. The determination of whether the costs shall be
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19 recovered and whether the costs shall be recovered through a
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20 periodic adjustment of rates shall be made by the Commission
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21 following proper notice and hearing in a cause to be filed by the
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22 electric utility in which it files such information as the
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23 Commission may require.
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Req. No. 663 Page 2
1 B. An electric utility subject to rate regulation by the
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2 Corporation Commission may file an application seeking Commission
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3 authorization of a plan by the utility to make capital expenditures
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4 for equipment or facilities necessary to comply with the federal
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5 Clean Air Act (CAA), the Clean Water Act (CWA), the Comprehensive
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6 Environmental Response, Compensation, and Liability Act (CERCLA),
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7 the Emergency Planning & Community Right-to-Know Act (EPCRA), the
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8 Endangered Species Act (ESA), the National Environmental Policy Act
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9 (NEPA), the Occupational Safety and Health Act (OSHA), the Oil
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10 Pollution Act (OPA), the Pollution Prevention Act (PPA), the
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11 Resource Conservation and Recovery Act (RCRA), the Safe Drinking
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12 Water Act (SDWA), the Toxic Substances Control Act (TSCA), all as
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13 amended, and, as the Commission may deem appropriate, federal,
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14 state, local or tribal environmental requirements which apply to
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15 generation facilities. If approved by the Commission, after notice
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16 and hearing, the equipment or facilities specified in the approved
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17 utility plan are conclusively presumed used and useful. The utility
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18 may elect to periodically adjust its rates to recover the costs of
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19 the expenditures. The utility shall file a request for a review of
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20 its rates pursuant to Section 152 of this title no more than twenty-
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21 four (24) months after the utility begins recovering the costs
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22 through a periodic rate adjustment mechanism and no more than
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23 twenty-four (24) months after the utility begins recovering the
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24 costs through any subsequent periodic rate adjustment mechanism.
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Req. No. 663 Page 3
1 Provided further, that a periodic rate adjustment or adjustments are
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2 not intended to prevent a utility from seeking cost recovery of
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3 capital expenditures as otherwise may be authorized by the
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4 Commission. However, the reasonableness of the costs to be
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5 recovered by the utility shall be subject to Commission review and
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6 approval. The Commission shall promulgate rules to implement the
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7 provisions of this subsection, such rules to be transmitted to the
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8 Legislature on or before April 1, 2007.
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9 C. 1. An electric utility subject to rate regulation by the
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10 Corporation Commission may elect to file an application seeking
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11 approval by the Commission to construct a new electric generating
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12 facility, to purchase an existing electric generation facility or
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13 enter into a long-term contract for purchased power and capacity
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14 and/or energy, subject to the provisions of this subsection. If,
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15 and to the extent that, the Commission determines there is a need
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16 for construction or purchase of the electric generating facility or
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17 long-term purchase power contract, the generating facility or
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18 contract shall be considered used and useful and its costs shall be
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19 subject to cost recovery rules promulgated by the Commission. The
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20 Commission shall enter an order on an application filed pursuant to
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21 this subsection within two hundred forty (240) days of the filing of
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22 the application, following notice and hearing and after
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23 consideration of reasonable alternatives.
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Req. No. 663 Page 4
1 2. Following receipt of an application filed pursuant to this
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2 subsection, the Corporation Commission staff may file a request to
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3 assess the specific costs, to be paid by the electric utility and
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4 which shall be deemed to be recoverable, for the costs associated
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5 with conducting the analysis or investigation of the application
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6 including, but not limited to, the cost of acquiring expert
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7 witnesses, consultants, and analytical services. The request shall
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8 be filed at and heard by the Corporation Commissioners in the docket
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9 opened by the electric utility pursuant to this subsection. After
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10 notice and hearing, the Commission shall decide the request.
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11 3. Additionally, following receipt of an application filed
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12 pursuant to this subsection, the Office of the Attorney General may
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13 file a request with the Corporation Commission for the assessment of
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14 specific costs, to be paid by the electric utility and which shall
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15 be deemed to be recoverable, associated with the performance of the
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16 Attorney General's duties as provided by law. Those costs may
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17 include, but are not limited to, the cost of acquiring expert
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18 witnesses, consultants and analytical services. The request shall
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19 be filed at and heard by the Corporation Commissioners in the docket
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20 opened by the electric utility pursuant to this subsection. After
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21 notice and hearing, the Commission shall decide the request.
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22 4. The Commission shall promulgate rules to implement the
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23 provisions of this subsection. The rules shall be transmitted to
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24 the Legislature on or before April 1, 2006. In promulgating rules
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Req. No. 663 Page 5
1 to implement the provisions of this subsection, the Commission shall
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2 consider, among other things, rules which would:
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3 a. permit contemporaneous utility recovery from its
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4 customers, the amount necessary to cover the
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5 Corporation Commission staff and Attorney General
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6 assessments as authorized by this subsection,
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7 b. establish how the cost of facilities approved pursuant
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8 to this subsection shall be timely reviewed, approved,
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9 and recovered or disapproved, and
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10 c. establish the information which an electric utility
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11 must provide when filing an application pursuant to
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12 this subsection, including information regarding the
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13 use or nonuse of grid enhancement technology to
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14 mitigate potential energy costs which may have caused
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15 the application to be filed.
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16 5. The Commission shall also consider rules which may permit an
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17 electric utility to begin to recover return on or return of
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18 Construction-Work-In-Progress expenses prior to commercial operation
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19 of a newly constructed electric generation facility subject to the
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20 provisions of this subsection.
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21 SECTION 2. This act shall become effective November 1, 2025.
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23 60-1-663 RD 1/19/2025 5:40:01 AM
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Req. No. 663 Page 6Every fact on this page links to its source, starting with the official bill record.