Bill > HB1737

This bill creates the Natural Gas Utility Infrastructure Cost Recovery Act of 2025, which provides a new framework for natural gas utilities to seek pre-approval from the Oklahoma Corporation Commission for infrastructure investments. The bill defines "energy infrastructure facility" broadly to include assets involved in energy production, processing, storage, transportation, and distribution, covering traditional and emerging technologies like renewable natural gas (RNG), hydrogen, and carbon capture. Natural gas utilities can now file applications to construct or purchase infrastructure facilities, enter gas supply contracts, or develop innovative technologies, with the Commission evaluating whether such projects serve the "public interest" - which includes enhancing energy reliability, promoting economic development, increasing system capacity, and providing environmental benefits. If approved, the utility can recover project costs through Commission-established rules, with any costs exceeding the approved amount by more than 10% subject to a prudency review. The bill also allows the Commission's staff and the Attorney General to request cost assessments for analyzing these applications, with those costs recoverable by the utility. The Commission must develop implementing rules by April 1, 2026, which will outline how utilities can recover costs, review facility investments, and what information must be submitted in applications. Notably, the bill may allow utilities to begin recovering expenses for infrastructure projects even before they become operational, potentially providing financial flexibility for major energy infrastructure investments. The act will take effect on November 1, 2025.

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1737&Session=2600