In a significant legal challenge, three Oklahoma lawmakers have filed a brief in the Oklahoma Supreme Court, aiming to reverse recent electricity rate hikes imposed by Oklahoma Gas and Electric (OG&E). The legislators—Rep. Tom Gann, Rep. Kevin West, and Rep. Rick West—are pushing for refunds that could exceed $300 million, arguing that the rate increases and related charges were improperly approved.
The brief, which spans 58 pages and was submitted just before Thanksgiving, specifically targets a $126.6 million rate increase that received approval from the state’s Corporation Commission a year ago. Only one commissioner, former Commissioner Bob Anthony, opposed the measure, subsequently issuing a dissenting opinion that extended to 146 pages.
Moreover, the lawmakers are seeking to overturn approximately $760 million in bonds issued by OG&E after the severe Winter Storm Uri in 2021. These bonds were intended to shield customers from the financial fallout of soaring natural gas prices. Since July 2022, OG&E has levied “winter event securitization” charges on its customers to facilitate the repayment of these bonds, which are projected to be settled around 2050.
In their legal argument, the legislators contend that the Corporation Commission failed to adhere to statutory requirements by approving the rate increase without conducting an audit. They reference the Regulated Utility Consumer Protection Act of February 2021, which mandates that audits be integral to any general rate case from a regulated utility that is currently affected by financing orders with outstanding ratepayer-backed bonds.
The response from the office of Attorney General Gentner Drummond challenges this assertion. In September, Drummond’s office filed a counter-response, stating that the commission had adequately met the audit requirements under the 2021 law, particularly in relation to proceedings involving another utility, the Public Service Company of Oklahoma.
Ethical concerns have also surfaced in the brief, as the legislators allege that Commissioner Todd Hiett should have recused himself from matters involving OG&E due to past improprieties. They reference incidents witnessed at a launch event in Oklahoma City, where allegations of criminal conduct involving Hiett emerged. While no criminal charges have been filed, the lawmakers suggest that Hiett’s involvement creates a significant conflict of interest.
The brief further critiques previous opinions from the Attorney General’s office, asserting that these opinions have contributed to a culture of “coverups” surrounding ongoing investigations involving the Corporation Commission and state utilities. The legislators are asking the court to formally disavow these opinions, arguing that such actions have concealed serious wrongdoing linked to the aftermath of the 2021 winter storm.
The lawmakers express deep concern for the financial burden placed on Oklahoman residents, particularly vulnerable groups like seniors and single mothers. They argue that the missteps of the Corporation Commission have resulted in millions of customers facing inflated charges on their monthly bills, which could accumulate to billions over time.
Ultimately, the legislators are requesting the court to mandate OG&E to refund approximately $160 million in increased rate revenues collected since July 2022, in addition to around $150 million in “winter event securitization” charges. They assert that the current financial structure surrounding OG&E’s bond financing and the subsequent rate case is unsustainable.
“This matter is urgent. Having already paid more than $300 million of these illegitimate charges, OG&E’s captive customers have suffered enough,” the brief states. This legal challenge highlights ongoing tensions between regulatory bodies and utility companies, raising critical questions about transparency, accountability, and consumer protection in Oklahoma’s energy sector.
