OK utility customers questioning reimbursement in Securitization Law

OKLAHOMA (KFOR) – Oklahoma utility customers are questioning the Securitization Law that requires Oklahomans to reimburse the state’s three main utility corporations.

The Securitization Law would require Oklahomans to reimburse these corporations $2.8 billion over the subsequent 28 years.

This stems from a February 2021 winter storm that despatched temperatures plunging and vitality prices hovering because the nation was underneath a polar storm.

Oklahoma regulation does permit for utility corporations to be reimbursed for buying gas at no matter worth these corporations paid for it.

Oklahoma Gas and Electric responded to the current backlash relating to the regulation in a press release.

“OG&E is dedicated to offering the life-sustaining and life-enhancing electrical energy our customers want. During Winter Storm Uri, OG&E was particularly involved in regards to the security and wellbeing of our customers. While temperatures had been dangerously low for an prolonged time frame, making certain dependable energy to the communities we serve was essential to preserving properties heated.

OG&E makes use of pure fuel to energy a big a part of our power-generating fleet, as do most electrical corporations in the U.S. Because OG&E was in a position to procure gas for our energy crops throughout the storm, we stored the warmth and lights on for our customers and helped provide energy to the SPP grid. This meant Oklahoma was in a position to keep away from the destiny of states like Texas that skilled sustained blackouts for upwards of two weeks as a consequence of energy era and grid failure, extraordinarily excessive electrical payments in the tens of 1000’s of {dollars} for residents and vital lack of life. 

In spring of 2021, Oklahoma lawmakers created and accepted the securitization regulation, the Oklahoma Corporation Commission issued an order approving the sale of the bonds after the Administrative Law Judge discovered OG&E prices to be prudent, and the Oklahoma Supreme Court in the end dominated your entire course of was constitutional and will proceed. While OG&E was not concerned in the legislative course of that resulted in the securitization of Winter Storm Uri debt, we admire Oklahoma lawmakers’ efforts to attenuate the quick and sustained monetary impression for customers associated to the winter storm.

OG&E and its peer electrical corporations in the state can not revenue from gas purchases. The worth the corporate pays for gas to generate electrical energy is the value our customers pay on their payments. We will proceed to work on behalf of our customers to safe the bottom price gas accessible and ship dependable electrical energy on the lowest attainable price.“

According to OG&E, that they had restricted enter in the draft Securitization Bill. However, they are saying they weren’t offered the invoice language till it was finalized.

“OG&E had limited input on the draft securitization bill; however, we were not provided the bill language until it was finalized.  From the moment OG&E knew that Winter Storm Uri caused extraordinary costs, we sought ways to mitigate the impacts to customers.  Securitization was an effective way to reduce the impact on the average customer’s monthly bill.”

OG&E