{"data":{"id":"us-ok/okla.-stat.-tit.-17-17-286","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 17, § 17-286","heading":"Electric utility – Transmission upgrade costs presumed","body":"recoverable – Applications for capital expenditures, facilities.\n\nA. 1. The portion of costs incurred by an electric utility,\n\nwhich is subject to rate regulation by the Corporation Commission,\n\nfor transmission upgrades approved by a regional transmission\n\norganization to which the utility is a member and resulting from an\n\norder of a federal regulatory authority having legal jurisdiction\n\nover interstate regulation of transmission rates, shall be presumed\n\nrecoverable by the utility. The presumption established in this\n\nparagraph may be rebutted by evidence that the costs so incurred by\n\nthe utility for the transmission upgrades exceed the scope of the\n\nproject authorized by the regional transmission organization or\n\norder issued by the federal regulatory authority having jurisdiction\n\nover interstate regulation of transmission rates. The Commission\n\nshall transmit rules to implement the requirements of this\n\nsubsection to the Legislature on or before April 1, 2006. The rules\n\nmay authorize an electric utility to periodically adjust its rates\n\nto recover all or a portion of the costs so incurred by the utility\n\nfor the transmission upgrades.\n\n2. Reasonable costs incurred by an electric utility for\n\ntransmission upgrades:\n\na. needed to develop wind generation in this state,\n\nb. approved by the Southwest Power Pool, and\n\nc. placed into service before December 31, 2013,\n\nshall be presumed recoverable through a periodic adjustment in the\n\nrates of the utility, provided that the presumption of the recovery\n\nof such costs or the recovery of such costs through a periodic\n\nadjustment in rates may be rebutted by evidence presented to the\n\nCommission. The determination of whether the costs shall be\n\nrecovered and whether the costs shall be recovered through a\n\nperiodic adjustment of rates shall be made by the Commission\n\nfollowing proper notice and hearing in a cause to be filed by the\n\nelectric utility in which it files such information as the\n\nCommission may require.\n\nB. An electric utility subject to rate regulation by the\n\nCorporation Commission may file an application seeking Commission\n\nauthorization of a plan by the utility to make capital expenditures\n\nfor equipment or facilities necessary to comply with the federal\n\nClean Air Act (CAA), the Clean Water Act (CWA), the Comprehensive\n\nEnvironmental Response, Compensation, and Liability Act of 1980\n\n(CERCLA), the Emergency Planning and Community Right-to-Know Act of\n\n1986 (EPCRA), the Endangered Species Act of 1973 (ESA), the National\n\nEnvironmental Policy Act of 1969 (NEPA), the Occupational Safety and\n\nHealth Act of 1970 (OSHA), the Oil Pollution Act of 1990 (OPA), the\n\nPollution Prevention Act of 1990 (PPA), the Resource Conservation\n\nand Recovery Act of 1976 (RCRA), the Safe Drinking Water Act (SDWA),\n\nthe Toxic Substances Control Act (TSCA), all as amended, and, as the\n\nCommission may deem appropriate, federal, state, local or tribal\n\nenvironmental requirements which apply to generation facilities. If\n\napproved by the Commission, after notice and hearing, the equipment\n\nor facilities specified in the approved utility plan are\n\nconclusively presumed used and useful. The utility may elect to\n\nperiodically adjust its rates to recover the costs of the\n\nexpenditures. The utility shall file a request for a review of its\n\nrates pursuant to Section 152 of this title no more than twenty-four\nilities. If\n\napproved by the Commission, after notice and hearing, the equipment\n\nor facilities specified in the approved utility plan are\n\nconclusively presumed used and useful. The utility may elect to\n\nperiodically adjust its rates to recover the costs of the\n\nexpenditures. The utility shall file a request for a review of its\n\nrates pursuant to Section 152 of this title no more than twenty-four\n\n(24) months after the utility begins recovering the costs through a\n\nperiodic rate adjustment mechanism and no more than twenty-four (24)\n\nmonths after the utility begins recovering the costs through any\n\nsubsequent periodic rate adjustment mechanism. Provided further,\n\nthat a periodic rate adjustment or adjustments are not intended to\n\nprevent a utility from seeking cost recovery of capital expenditures\n\nas otherwise may be authorized by the Commission. However, the\n\nreasonableness of the costs to be recovered by the utility shall be\n\nsubject to Commission review and approval. The Commission shall\n\npromulgate rules to implement the provisions of this subsection,\n\nsuch rules to be transmitted to the Legislature on or before April\n\n1, 2007.\n\nC. 1. An electric utility subject to rate regulation by the\n\nCorporation Commission may elect to file an application seeking\n\napproval by the Commission to construct a new electric generating\n\nfacility, to purchase an existing electric generation facility or\n\nenter into a long-term contract for purchased power, capacity and\n\nenergy, subject to the provisions of this subsection. If, and to\n\nthe extent that, the Commission determines there is a need for\n\nconstruction or purchase of the electric generating facility or\n\nlong-term purchase power contract, the generating facility or\n\ncontract shall be considered used and useful and its costs shall be\n\nsubject to cost recovery rules promulgated by the Commission. The\n\nCommission shall enter an order on an application filed pursuant to\n\nthis subsection within two hundred forty (240) days of the filing of\n\nthe application, following notice and hearing and after\n\nconsideration of reasonable alternatives, unless the electric\n\ngeneration facility utilizes natural gas as its primary fuel source.\n\nIf the electric generation facility uses natural gas as its primary\n\nfuel source, then the Commission shall enter an order on an\n\napplication filed pursuant to this subsection within one hundred\n\neighty (180) days of the filing of the application, following notice\n\nand hearing and after consideration of reasonable alternatives.\n\n2. Bids received by the utility through a competitive bidding\n\nprocess within the twelve (12) months following the final bid due\n\ndate of such competitive bidding process shall be considered\n\nsubstantial evidence to satisfy the consideration of reasonable\n\nalternatives.\n\n3. Following receipt of an application filed pursuant to this\n\nsubsection, the Corporation Commission staff may file a request to\n\nassess the specific costs, to be paid by the electric utility and\n\nwhich shall be deemed to be recoverable, for the costs associated\n\nwith conducting the analysis or investigation of the application\n\nincluding, but not limited to, the cost of acquiring expert\n\nwitnesses, consultants, and analytical services. The request shall\n\nbe filed at and heard by the Corporation Commissioners in the docket\n\nopened by the electric utility pursuant to this subsection. After\n\nnotice and hearing, the Commission shall decide the request.\n\n4. Additionally, following receipt of an application filed\n\npursuant to this subsection, the Office of the Attorney General may\n\nfile a request with the Corporation Commission for the assessment of\n\nspecific costs, to be paid by the electric utility and which shall\n\nbe deemed to be recoverable, associated with the performance of the\n\nAttorney General’s duties as provided by law. Those costs may\n\ninclude, but are not limited to, the cost of acquiring expert\npursuant to this subsection, the Office of the Attorney General may\n\nfile a request with the Corporation Commission for the assessment of\n\nspecific costs, to be paid by the electric utility and which shall\n\nbe deemed to be recoverable, associated with the performance of the\n\nAttorney General’s duties as provided by law. Those costs may\n\ninclude, but are not limited to, the cost of acquiring expert\n\nwitnesses, consultants and analytical services. The request shall\n\nbe filed at and heard by the Corporation Commissioners in the docket\n\nopened by the electric utility pursuant to this subsection. After\n\nnotice and hearing, the Commission shall decide the request.\n\n5. The Commission shall promulgate rules to implement the\n\nprovisions of this subsection. The rules shall be transmitted to\n\nthe Legislature on or before April 1, 2006. In promulgating rules\n\nto implement the provisions of this subsection, the Commission shall\n\nconsider, among other things, rules which would:\n\na. permit contemporaneous utility recovery from its\n\ncustomers, the amount necessary to cover the\n\nCorporation Commission staff and Attorney General\n\nassessments as authorized by this subsection,\n\nb. establish how the cost of facilities approved pursuant\n\nto this subsection shall be timely reviewed, approved,\n\nand recovered or disapproved, and\n\nc. establish the information which an electric utility\n\nshall provide when filing an application pursuant to\n\nthis subsection.\n\n6. The Commission shall permit an electric utility to begin to\n\nrecover return on and return of Construction-Work-In-Progress\n\nexpenses prior to commercial operation of a newly constructed\n\nelectric generation facility subject to the provisions of this\n\nsubsection, provided the newly constructed electric generation\n\nfacility utilizes natural gas as its primary fuel source. The\n\nCommission shall permit a separate rate adjustment mechanism,\n\nadjusted periodically, to recover the costs described in this\n\nsection for new capacity in natural-gas-fired electric generation\n\nfacilities. The new natural-gas-fired electric generation capacity\n\neligible for those provisions shall also include new natural-gas-\n\nfired capacity additions at an existing electric generation\n\nfacility. If a public utility implements a rate adjustment\n\nmechanism pursuant to this section and subsequently terminates the\n\ninitiative to construct or acquire stake in a natural gas electric\n\ngeneration facility, the public utility shall automatically refund\n\ncustomers any amounts collected through such rate adjustment\n\nmechanism plus interest at the one-year United States Treasury Bill\n\nrate through the mechanism, over a period not to exceed ninety (90)\n\ndays from the effective date of the termination of the initiative.\n\n7. For any new natural-gas-fired electric generation facility\n\nconstructed pursuant to this section, an electric utility shall\n\nsecure a firm contract to transport natural gas to the generating\n\nfacility. Such contract shall be secured pursuant to a competitive\n\nsolicitation process conducted in accordance with applicable\n\nCommission rules. The cost incurred for the contract shall be\n\npresumed recoverable by the electric utility through its applicable\n\nfuel adjustment clause. Costs assessed upon the electric utility by\n\nthe Commission for non-compliance with this section shall not be\n\nrecoverable from the customers of the electric utility. If the\n\nelectric utility does not receive a bid for firm transportation as a\n\nresult of its competitive solicitation, the electric utility shall\n\nbe considered compliant with the requirements of this section\n\nprovided that the Commission determines that the competitive\n\nsolicitation is for a firm contract for transport of natural gas\n\nwhich could be reasonably provided by an available pipeline.","path":["OK Code","Title 17"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os17.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"eba1bc4266cb2d3163ac34050b2fe06f7e24907b0f3c6f3317041dbb52c8f001","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-17-17-285","next":"us-ok/okla.-stat.-tit.-17-17-286a"},"notice":"GroundRules: Original legal text. Not legal advice."}