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OklahomaSB 998Oklahoma 2026 Regular SessionSenateWALLET

Public utilities; cost of transmission upgrades; modifying application process for construction of certain facilities; establishing cost recovery provisions.

Sponsored By: Grant Green (Republican)

Became Law

Senate Committee

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Customers fund gas plants during construction

Oklahoma regulators must allow regulated utilities to recover construction spending and investment returns before new gas-fired plants begin operating. A separate, regularly updated rate adjustment covers new gas-fired capacity, including additions at existing plants. Application decisions are due within 180 days for gas-fired plants, versus 240 days generally; the process also covers long-term power contracts. Regulators must give notice, hold a hearing, and consider reasonable alternatives. Competitive bids received within 12 months after the final bid deadline count as substantial evidence of alternatives.

Utilities save costs for later bills

Utilities that notify Oklahoma regulators of their choice must set aside 90% of depreciation costs and 90% of investment returns. Eligible equipment must enter service after the utility’s last general rate case; transmission facilities and new generating units are excluded. Regulators must review whether spending was prudent, with notice and a hearing, before adding these balances to the investment amount used to set rates. For rate cases concluded on or after July 1, 2025, qualifying balances for equipment added after the test year enter that amount without unrelated offsets, subject to prudence cuts. Included balances are recovered over 20 years, starting when rates reflecting that repayment take effect. Balances not included accrue carrying costs at the utility’s weighted average cost of capital, plus applicable income or excise taxes.

Customers get refunds for canceled plants

Utilities must automatically refund charges collected through an approved rate adjustment when they cancel a gas-fired plant initiative. This covers initiatives to build a plant or buy a stake in one. Customers receive all amounts collected, plus interest at the one-year U.S. Treasury bill rate. Refunds are due within 90 days after the cancellation takes effect.

Gas delivery charges with customer safeguards

Utilities building new gas-fired plants under this law must competitively seek a firm contract to transport gas. Contract costs are presumed recoverable through the fuel adjustment on customer bills, but that presumption can be challenged. Utilities cannot charge customers for costs regulators assess for failing to follow the rules. If nobody bids, regulators must find the utility sought a contract that an available pipeline could reasonably provide.

Sponsors & Cosponsors

Sponsor

  • Grant Green

    Republican • Senate

Cosponsors

  • Todd Gollihare

    Republican • Senate

  • Trey Caldwell

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 149 • No: 101

House vote • 5/6/2025

EMERGENCY

Yes: 48 • No: 36

House vote • 5/6/2025

THIRD READING

Yes: 51 • No: 39

House vote • 4/16/2025

DO PASS

Yes: 11 • No: 3

House vote • 4/8/2025

DO PASS

Yes: 5 • No: 2

Senate vote • 3/27/2025

THIRD READING

Yes: 26 • No: 20

Senate vote • 3/6/2025

THE OKLAHOMA

Yes: 8 • No: 1

Actions Timeline

  1. Becomes law without Governor's signature 05/14/2025

    5/14/2025Senate

  2. Sent to Governor

    5/7/2025Senate

  3. Signed, returned to Senate

    5/7/2025House

  4. Enrolled, to House

    5/7/2025Senate

  5. Referred for enrollment

    5/6/2025Senate

  6. Signed, returned to Senate

    5/6/2025House

  7. Third Reading, Measure passed and Emergency failed: Ayes: 51 Nays: 39; Ayes: 48 Nays: 36

    5/6/2025House

  8. General Order

    5/6/2025House

  9. CR; Do Pass Energy and Natural Resources Oversight Committee

    4/16/2025House

  10. Policy recommendation to the Energy and Natural Resources Oversight committee; Do Pass Utilities

    4/9/2025House

  11. Referred to Utilities

    4/1/2025House

  12. Second Reading referred to Energy and Natural Resources Oversight

    4/1/2025House

  13. First Reading

    3/31/2025House

  14. Engrossed to House

    3/31/2025Senate

  15. Referred for engrossment

    3/27/2025Senate

  16. Emergency passed: Ayes: 33 Nays: 13

    3/27/2025Senate

  17. Measure passed: Ayes: 26 Nays: 20

    3/27/2025Senate

  18. General Order, Amended by Floor Substitute

    3/27/2025Senate

  19. Coauthored by Representative Caldwell (Trey) (principal House author)

    3/25/2025Senate

  20. Coauthored by Senator Gollihare

    3/13/2025Senate

  21. Remove as author Senator Gollihare; authored by Senator Green

    3/13/2025Senate

  22. Placed on General Order

    3/11/2025Senate

  23. Reported Do Pass Energy committee; CR filed

    3/6/2025Senate

  24. Second Reading referred to Energy

    2/4/2025Senate

  25. Authored by Senator Gollihare

    2/3/2025Senate

Bill Text

  • Enrolled (final version)

    5/7/2025

    PDF

  • Floor (House)

    4/17/2025

    PDF

  • House Committee Report

    4/16/2025

    PDF

  • House Policy Committee Report

    4/9/2025

    PDF

  • Engrossed

    3/31/2025

    PDF

  • Floor (Senate)

    3/10/2025

    PDF

  • Senate Committee Report

    3/6/2025

    PDF

  • Introduced

    1/16/2025

    PDF

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