Bill > HB1350

This bill amends existing Oklahoma law regarding how utility companies can recover extreme purchase costs and extraordinary costs through securitization (a financial method of converting future revenue streams into immediate cash). The bill clarifies and enhances the Oklahoma Corporation Commission's process for reviewing and approving such cost recoveries by requiring a more rigorous audit process that must comply with specific statutory definitions and attestation requirements. The bill mandates that utilities seeking to recover these costs must provide detailed documentation, demonstrate potential customer bill impacts, and show how securitization could reduce customer expenses compared to traditional financing. The Commission must consider factors like potential revenue savings, customer bill impact, and the overall cost-effectiveness of issuing ratepayer-backed bonds. Additionally, the bill specifies that if a utility receives insurance proceeds or grants that offset these extraordinary costs, those funds must be used to reduce the costs recoverable from customers. The bill also allows the Commission to engage financial advisors to assist in evaluating these cost recovery requests, with expenses recoverable through the bond issuance. The amendments are set to take effect on November 1, 2025, providing utilities and regulators time to prepare for the new requirements.

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1350&Session=2600