{"data":{"id":"us-ok/okla.-stat.-tit.-17-17-286a","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 17, § 17-286A","heading":"Deferrals to regulatory assets of depreciation expenses","body":"and return associated with qualifying electric plants — Review of\n\nregulatory asset balances.\n\nA. 1. On and after the effective date of this act, a public\n\nutility shall defer to a regulatory asset ninety percent (90%) of\n\nall depreciation expenses and return associated with all qualifying\n\nelectric plants placed in service, provided the public utility has\n\nprovided notice to the Corporation Commission of the public\n\nutility’s election to make such deferrals pursuant to this section.\n\nDeferral under this section shall begin on the effective date of\n\nthis act if the public utility notifies the Commission of the\n\nelection prior to the effective date, or on the date that the\n\nutility notifies the Commission of the election if such date is\n\nafter the effective date of this act.\n\n2. For the purposes of this section, “qualifying electric\n\nplant” means all incremental electric plants placed in service by a\n\npublic utility following the utility’s last general rate case,\n\nexcluding transmission facilities or new electric generating units.\n\nB. The Commission shall conduct a prudence review of the\n\nassociated qualifying electric plant resulting in the regulatory\n\nasset balances prior to moving such balances into the public\n\nutility’s rate base. The regulatory asset balances arising under\n\nthis section shall be adjusted to reflect any prudence disallowances\n\nof the associated qualifying electric plant, following notice and\n\nhearing, as ordered by the Commission.\n\nC. Unless otherwise provided by this section, in each general\n\nrate proceeding concluded on or after July 1, 2025, the balance of\n\nthe regulatory asset as of the end of the test year shall be\n\nincluded in the public utility’s rate base without any offset,\n\nreduction, or adjustment based upon consideration of any other\n\nfactor with the regulatory asset balances arising from deferrals\n\nassociated with the qualifying electric plant placed in service\n\nafter the end of the test year.\n\nD. Parts of regulatory asset balances created under this\n\nsection that are not included in rate base shall accrue carrying\n\ncosts at the public utility’s weighted average cost of capital plus\n\napplicable federal, state, and local income or excise taxes.\n\nRegulatory asset balances arising under this section that are\n\nincluded in rate base shall be recovered in rates through a twenty-\n\nyear amortization beginning on the date new rates reflecting such\n\namortization take effect.\n\nE. Depreciation expenses deferred under this section shall\n\naccount for any qualifying electric plant placed into service.\n\nReturn deferred under this section shall be determined using the\n\nweighted average cost of capital approved by the Commission in the\n\npublic utility’s last general rate case and applied to the change in\n\nregulatory asset balances caused by the qualifying electric plant,\n\nplus applicable federal, state, and local income or excise taxes.\n\nIn determining the return deferred, the public utility shall account\n\nfor changes in all plant-related accumulated deferred income taxes\n\nand changes in accumulated depreciation, excluding retirements.\n\nF. This section shall only apply to any public utility that has\n\nelected to make the deferrals for which this section provides and\n\nfiled a notice with the Commission of such election.","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":"f890edfe6a2bd7544352a380241276817be76eccbacf20bc12f67353ebd1d67e","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-17-17-286","next":"us-ok/okla.-stat.-tit.-17-17-287"},"notice":"GroundRules: Original legal text. Not legal advice."}