Statement from Alliance for Secure Energy Executive Director Jeff Cloud

By Jeff Cloud | September 1, 2022

I’m troubled by AERO’s blatant misrepresentation of Oklahoma as having the highest electricity rates in our region. This is simply untrue. Reports released by the Public Utility Commission of Texas clearly show that Texas’ deregulated prices are continuing to climb at a dramatically higher rate than Oklahoma’s when comparing 2021 rates to 2022 rates. While Oklahoma electricity prices are at 10.87 cents, Texas is seeing prices between 20 and 30 cents, and some service areas are seeing as much as 150% increase. 

It’s important to note that the data in the U.S. Energy Information Administration (EIA) report contains information from ALL reporting sellers of electricity: government-owned electric systems, cooperatives, and investor-owned utilities - both regulated and unregulated. With so many different types of reporting entities sending in their prices, the data does not show how the prices of Oklahoma utilities subject to OCC regulation compare to prices paid by Texas customers subject to the AERO model.

AERO’s proposal would have an extremely detrimental impact on residential electric rates in Oklahoma.  AERO has already indicated that the proposed legislation they plan to bring to state leaders in 2023 will not address residential rates at all.  Instead, AERO will suggest that customer choice should be limited to only certain commercial and industrial customers and that residential customers should remain regulated.  We know, however, that utilities simply cannot deregulate one or two customer segments.  If that were to occur, costs could shift to residential customers causing residential rates to skyrocket. It would be inappropriate and inequitable for marketers to cherry pick the largest, most profitable, customers and leave smaller customers holding the bag for the fixed costs of operating and maintaining the vertically integrated utility system. 

This negative financial and operational impact on consumers is why it has been nearly 20 years since any state has decided to deregulate its electricity system. Our regulated model has served Oklahoma utility customers well for more than 100 years, allowing us to avoid the uncertain and unmanageable risks of electric deregulation.