Okla. Stat. tit. 17, § 17-258: Approval of purchased power adjustment clauses

A. No purchased power adjustment clause of any kind shall apply

nor be used in computing bills for retail electric service which has

not been first approved by the Commission.

B. If the Commission finds that the changed price of purchased

wholesale power required for distribution by any electric

distribution cooperative threatens the ability of the cooperative to

earn a reasonable rate of return, the Commission may, after

investigation and public hearing, approve a suitable purchased power

adjustment clause to be superimposed upon the existing retail

electric rate schedules of the cooperative and designed only to

recapture such increased costs of wholesale power.

C. The Commission shall design the purchased power adjustment

clause to allow the electric distribution cooperative to increase or

decrease its charges for retail electric service as provided in its

approved electric rates only for the changes in the cost of

purchased power when the price of such purchased power differs from

the price which is reflected in its basic approved retail rates. It

shall include in a purchased power adjustment clause an allowance

for line losses if a preponderance of evidence points to the

probable conclusion that failure to do so will result in less than a

reasonable rate of return for the cooperative.