Oklahoma boasts significant advantages in energy policies, electric companies and regulations

By Jennifer Springer | The Oklahoman

Credit: PATRICK T. FALLON, AFP Via Getty Images

When new business comes to the state or a local company seeks to expand production and capacity, Oklahoma’s reliable, affordable and secure energy is the unsung hero. With the seventh-lowest costs in the nation and a trusted and regulated grid, Oklahoma has created an energy landscape ripe for business investment ― and it’s one we need to protect as we build Oklahoma’s future.

A 2024 Area Development site consultant survey found that energy costs, availability and reliability are top factors for why companies chose a location for their facilities. Because of our state’s energy policies, electric companies and regulations, Oklahoma boasts significant advantages in all three of those categories.

With energy costs 20% to 30% below the national average, Oklahoma offers a competitive advantage in economic development projects. Power is a significant operating cost for nearly every organization — and a major deciding factor for where to locate facilities involved in high electricity usage industries like technology, data centers or manufacturing. When communities work with their electric providers, they can take advantage of significant savings and become even more competitive.

Far beyond their primary function of providing power, the state’s largest electric companies also play a pivotal role in economic development for the state. When businesses look at Oklahoma for new projects, energy companies are among the first entities in the room, offering incentives and investments to the state’s prospects. And it’s not just about new prospects: These companies regularly invest in existing companies and invest thousands to improve efficiencies, which encourages companies to come to Oklahoma and thrive.

Another major selling point for Oklahoma is our energy mix and availability. According to the Energy Information Administration, Oklahoma also produces more energy than it consumes, making its energy availability another advantage to states where the opposite is true. Because of Oklahoma’s all-of-the-above approach to energy, we’re able to attract national and global manufacturing companies that often require access to 100% renewable energy before investing in a new facility. And, as part of the Southwest Power Pool, the state has access to a blend of natural gas, coal, wind, solar, geothermal and hydropower sources providing cleaner, more reliable power at a significant savings to Oklahoma businesses.

Preserving Oklahoma’s reliable, low-cost energy is integral to attracting and retaining business in the state and building a strong economy. Affordability must be balanced with regular investments in our grid, so that our low-cost energy remains secure and reliable. Oklahoma's electric companies are committed to this balance, ensuring businesses and residents alike have reliable power by modernizing the grid while driving economic progress.

For Oklahoma’s economy to thrive, electricity providers, businesses and policymakers must work together to prioritize policies that continue to build a more secure, reliable grid while balancing the affordability Oklahomans and our business community have grown to expect. Our advantage is not a given, and a continued investment in our state’s energy is integral to maintaining and building upon this competitive edge.

Jennifer Springer is policy director for Alliance for Secure Energy and previously served as the director of business development for the Oklahoma Department of Commerce.