{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-9073","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-9073","heading":"Determination of extreme purchase or extraordinary costs","body":"A. The Oklahoma Corporation Commission may determine upon\n\nreceiving an application or in any proceeding where the issue is\n\nproperly brought before it that extreme purchase costs,\n\nextraordinary costs or both, requested for recovery by a regulated\n\nutility are subject to this act and may be mitigated through\n\nsecuritization in order to reduce the utility bill impact on\n\ncustomers. For the purposes set forth in this section, the utility\n\nshall:\n\n1. Provide the known extreme purchase and extraordinary costs,\n\nand estimates of any extreme purchase or extraordinary costs not yet\n\nfinalized that are being requested for recovery through\n\nsecuritization;\n\n2. Demonstrate the utility bill impacts of securitization and\n\nthe degree of savings customers would experience related to issuing\n\nratepayer-backed bonds in comparison with traditional utility\n\nfinancing; and\n\n3. Facilitate a timely audit of all costs requested for\n\nrecovery prior to the utility being authorized to recover costs\n\nthrough the issuance of a financing order.\n\nB. The Commission may develop forms and procedures to receive\n\nand review applications for the establishment of qualified costs;\n\nprovided, the application shall require but not be limited to the\n\namount of extreme purchase costs and extraordinary costs requested\n\nfor recovery and any other information or documentation required by\n\nthe Commission to effectuate this act.\n\nC. The Commission shall consider the following factors when\n\ndetermining whether extreme purchase costs or extraordinary costs\n\nshould be mitigated by the issuance of ratepayer-backed bonds:\n\n1. Substantial revenue requirement savings that may be incurred\n\nto the benefit of customers by relying on lower carrying charges\n\nrelated to ratepayer-backed bonds rather than by conventional\n\nfinancing obtained by the regulated utility;\n\n2. Customer utility bill impact that may be mitigated by\n\nmandating a longer amortization period for recovery than would\n\notherwise be practicable or feasible for the regulated utility; and\n\n3. The issuance of ratepayer-backed bonds that may be completed\n\nat a sufficiently low cost such that customer savings are not\n\nexhausted or offset.\n\nD. 1. The Commission may engage financial advisors or other\n\nconsultants as may be necessary to assist in the evaluation required\n\npursuant to subsection C of this section. Expenses incurred for\n\nthose purposes shall be recoverable as administrative expenses of\n\nthe Oklahoma Development Finance Authority through the issuance of\n\nratepayer-backed bonds pursuant to Section 8 of this act.\n\n2. The provisions of the Oklahoma Central Purchasing Act,\n\nSection 85.1 et seq. of Title 74 of the Oklahoma Statutes, shall not\n\nbe applicable to the engagement authorized by paragraph 1 of this\n\nsubsection but shall be subject to review by the Deputy Treasurer\n\nfor Policy and Debt Management.\n\nE. In determining the amount of extreme purchase costs and\n\nextraordinary costs to be mitigated through securitization, the\n\nCommission shall determine that the amounts incurred would otherwise\n\nbe recoverable from customers as fair, just and reasonable expenses\n\nand prudently incurred.\n\nF. Extreme purchase costs and extraordinary costs determined by\n\nthe Commission to be subject to this act and to be mitigated by\n\nissuing ratepayer-backed bonds shall include carrying costs at an\n\nappropriate rate determined by the Commission as set forth in a\n\nfinancing order. The carrying costs shall begin accruing at a time\n\ndetermined by the Commission in the financing order and continue\n\nuntil the date that ratepayer-backed bonds are issued, or the costs\n\nare otherwise recovered.\n\nG. To the extent the regulated utility receives insurance\n\nproceeds, governmental grants or any other source of funding that\n\ncompensates it for extreme purchase costs or extraordinary costs\n\nsubject to securitization, or if actual amounts are determined to be\nmission in the financing order and continue\n\nuntil the date that ratepayer-backed bonds are issued, or the costs\n\nare otherwise recovered.\n\nG. To the extent the regulated utility receives insurance\n\nproceeds, governmental grants or any other source of funding that\n\ncompensates it for extreme purchase costs or extraordinary costs\n\nsubject to securitization, or if actual amounts are determined to be\n\nlower than estimated amounts, those amounts shall be used to reduce\n\nthe extreme purchase costs or extraordinary costs of the utility\n\nrecoverable from customers. The Commission shall direct whether the\n\nfunds shall be provided directly to the Authority to offset amounts\n\nsecuritized or whether they shall be held as a separate regulatory\n\nliability offsetting rate base or returned to customers through some\n\nother appropriate regulatory mechanism. The amounts so received\n\nshall accrue carrying charges at a rate equivalent to the rate\n\ndetermined pursuant to subsection F of this section if they are\n\nreceived before ratepayer-backed bonds are issued. If received\n\nafter the issuance of ratepayer-backed bonds, the amounts shall\n\naccrue carrying charges at a rate determined by the Commission.","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"a1329d89e48787171c8d621f79c137de53505c5190050afed13f6090be24642f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-9072","next":"us-ok/okla.-stat.-tit.-74-74-9074"},"notice":"GroundRules: Original legal text. Not legal advice."}