Guest: State senators could stop utility hikes for Oklahomans
Jeff Cloud | The Oklahoman
Oklahoma senators have the opportunity to help their constituents’ pocketbooks by voting yes on the Ratepayer Protection Act of 2023, or Senate Bill 1103.
Winter Storm Uri (in 2021) produced massive price shocks for ratepayers from unprecedented spikes in natural gas prices. Now is the time to stop it from happening again. I am proud that Oklahoma electric utilities provided power to their customers during the storm, protecting lives and the grid, unlike Texas. The reality is that residential customers bore the brunt of fuel cost increases. While everyone wants someone to blame, electric utilities do not ― and cannot ― make money on fuel. Even so, we must do more to protect Oklahoma ratepayers, and SB 1103 represents a major step in the right direction.
Another take: Corporation commissioner: SB 1103 will increase ratepayers' costs, limit panel's oversight\
A yes vote for SB 1103 would stop price shocks from extreme winter storms by requiring electric utilities to store adequate supplies of natural gas and add much needed protections for Oklahoma ratepayers.
For one, if electric utilities exceed an earnings threshold set by the Oklahoma Corporation Commission, SB 1103 would require the companies to return 100% of excess profits to customers: 75% through direct refunds on electric bills and 25% invested to improve grid reliability.
The bill also would increase oversight and accountability by requiring mandatory annual reviews of electric utility expenses. This ensures electric companies invest in projects that deliver the best results and lowest costs for ratepayers. Increased regulatory oversight allows ratepayers to stay informed and means regulators can hold electric utilities more accountable.
Additionally, SB 1103 would add more consumer protections by creating new ratepayer payment options to help consumers better manage their bills. This would stabilize electric bills by requiring options for flat and average monthly billing, utility bill relief programs, rate options for customers with low income and customer disconnection prevention. Electric customers currently have no right to any of these protections under existing statute. The Oklahoma Corporation Commission has modified its rules at least 17 times in the past 30 years. Without SB 1103, customers risk these programs and protections being taken away or changed without legislative approval.
SB 1103 does not mean automatic rate increases. That’s nothing more than a scare tactic, which ultimately hurts Oklahomans. Under this bill, rates could only change if electric companies perform and when approved by the Oklahoma Corporation Commission.
There is precedent for this type of legislation, as Arkansas passed a similar law in 2015. As of November 2022, Arkansas has a lower electricity cost than Oklahoma.
If you agree that we need more oversight of electric utilities and protections for ratepayers, contact your senator today and encourage them to vote YES on SB 1103.