Legislature under pressure to solve franchise fee debate and winter storm costs

Seven months after an Oklahoma Supreme Court justice indicated ratepayers might be burdened with anywhere from $60 million to $100 million more costs on top of their 2021 winter storm rate hikes, legislators are being told it could in the range of $150 million. Yes, Winter Storm Uri remains a nightmare for ratepayers that just won’t go away.

The figure is involved in the legislature’s discussion of HB1220, an attempt to reinstate the extemption of ratepayers’ Winter Storm Uri securitized utility debt  from the franchise fees collected across the state in various cities and towns. The bill was created after  the State Supreme Court ruled last November that the Corporation Commission’s approval on a 2-1 vote to allow utilities to suspend collection of the fees was to be reversed. The ruling came in a challenge filed by Oklahoma City and the Oklahoma Municipal League.

Vice-Chief Justice Dustin Rowe issued a concurring opinion in the decision but warned it could mean possibly $100 million more on top of the $3.07 billion in winter storm charges.

Legislature under pressure to solve franchise fee debate and winter storm costs - Oklahoma Energy Today