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The Facts About Senate Bill 1103

The Ratepayer Protection Act of 2023 (SB 1103) will offer electric utility customers increased protections, decreased electricity cost volatility and more options for utility bill management. The bill requires increased fuel storage, helping to keep fuel prices low. Ultimately, the bill stops price shocks, creates accountability and protects customers. 

Niche interest groups making false claims about SB 1103 benefit from the status quo. Encourage your senator to Vote YES for SB 1103 to protect Oklahomans, stabilize fuel costs and guarantee customer bill options. 

Learn more about how this bill protects Oklahomans by reading ASE Director Jeff Cloud's op-ed in the Oklahoman.

 
 
 

Myth

In Arkansas, legislation similar to the Ratepayer Protection Act has caused rates to rise astronomically since it was implemented in 2015, where Oklahoma rates have stayed consistently lower.

 

Fact

As of November 2022, Arkansas has a lower electricity cost than Oklahoma, and since 2015 Arkansas and Oklahoma rates have tracked closely. 

 
 
 
 

Source: Energy Information Administration (EIA), Electric Power Monthly/Annual

Myth

SB 1103 would result in an annual rate increase for Oklahoma utility customers.

 

Fact

Rates cannot change without a vote from the Oklahoma Corporation Commission. There are no automatic rate increases.

Myth

SB 1103 allows utilities to earn higher returns and keep 25% of excessive earnings.

 

Fact

False. If electric utilities exceed the earnings threshold set by the Oklahoma Corporation Commission, SB 1103 requires electric companies to return 100% of the excess amount to customers. Under the Ratepayer Protection Act of 2023: 

  • 75% of these earnings will be returned to customers through direct refunds on their electric bills

  • 25% is required to be invested in the grid to improve reliability.

Myth

SB 1103 doesn’t add any consumer protections that don’t already exist. Oklahoma utilities already offer deferred billing options, average billing, flat billing options, time of use, and other rate and billing offerings.

 

Fact

Customers have no right to any of these protections under existing statute. The OCC has modified its own rules at least 17 times in the past 30 years. Without SB1103, customers risk these programs and protections being taken away or changed without legislative approval.

Myth

Implementing performance based rates, or PBRs, would result in automatic rate increases.

 

Fact

By law, rates can only change if electric companies perform and when approved by the Oklahoma Corporation Commission (OCC). The Ratepayer Protection Act: 

  • Increases regulatory oversight by requiring a mandatory, annual review of electric companies’ expenses

  • Refunds excess profits to customers through direct bill credits 

 

Read the full legislation text here.