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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1227 By: West (Kevin)
AS INTRODUCED
An Act relating to utilities; amending 17 O.S. 2021,
Section 158.25, as amended by Section 1, Chapter 95,
O.S.L. 2023 (17 O.S. Supp. 2024, Section 158.25),
which relates to exclusive rights within territory;
requiring certain retail electric suppliers submit
certain annual report; requiring the promulgation of
certain rules; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 17 O.S. 2021, Section 158.25, as
amended by Section 1, Chapter 95, O.S.L. 2023 (17 O.S. Supp. 2024,
Section 158.25), is amended to read as follows:
Section 158.25. A. Except as otherwise provided herein, each
retail electric supplier shall have the exclusive right to furnish
retail electric service to all electric-consuming facilities located
within its certified territory, and shall not furnish, make
available, render or extend its retail electric service to a
consumer for use in electric-consuming facilities located within the
certified territory of another retail electric supplier; provided
that any retail electric supplier may extend its facilities through
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the certified territory of another retail electric supplier, if such
extension is necessary for such supplier to connect any of its
facilities or to serve its consumers within its own certified
territory.
B. Except as provided in subsections C and E of this section,
any new electric-consuming facility located in an unincorporated
area which has not as yet been included in a map issued by the
Commission, pursuant to Section 158.24 of this title, or certified,
pursuant to Section 158.24 of this title, shall be furnished retail
electric service by the retail electric supplier which has an
existing distribution line in closer proximity to such electric-
consuming facility than is the nearest existing distribution line of
any other retail electric supplier. Any disputes under this
subsection shall be resolved by the Commission.
C. If the Commission, after hearing, shall determine that the
retail electric service being furnished or proposed to be furnished
by a retail electric supplier to an electric-consuming facility is
inadequate and is not likely to be made adequate, the Commission may
authorize another retail electric supplier to furnish retail
electric service to such facility.
D. Except as provided in subsection C of this section, no
retail electric supplier shall furnish, make available, render or
extend retail electric service to any electric-consuming facility to
which such service is being lawfully furnished by another retail
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electric supplier on September 10, 1971, or to which retail electric
service is lawfully commenced thereafter in accordance with this
section by another retail electric supplier.
E. The provisions of this act shall not preclude any retail
electric supplier from extending its service after September 10,
1971, (1) to its own property and facilities, in an unincorporated
area, and (2) subject to subsection D of this section, to an
electric-consuming facility requiring electric service, in an
unincorporated area, if the connected load for initial full
operation of such electric-consuming facility is to be 1,000 kw or
larger.
F. To achieve the purposes of efficient, cost-effective retail
electric service without duplication of electric facilities and to
avoid unfairly shifting costs to residential consumers, retail
electric service providers are required to establish and utilize
rate tariffs which are specifically applicable to a rate class of
customers composed of electric consuming facilities being served in
accord with the 1,000 kw size exception found in subsection E of
this section and located outside the retail electric service
provider's certified territory. These tariffs may be for a specific
electric consuming facility or for a class of electric consuming
facilities taking service under this provision. For retail electric
service providers that are rate-regulated by the Commission, the
rates supporting this rate class shall be determined in the rate-
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regulated service provider's most recent rate proceeding. Rates for
this rate class shall be designed to recover (i) the costs of
extending service to the competitive load of electric consuming
facilities of 1,000 kw or larger located outside the retail electric
service provider's certified territory; and (ii) the allocated share
of other costs associated with providing service to the electric
consuming facility. Such tariffs shall be cost-of-service based and
shall not subsidize other rate classes or be subsidized by other
rate classes. Unless costs of extending service to such a new load
are collected from the customer, those costs shall be included in
the cost of service study in the next rate proceeding. If the
electric service provider, in whose certified territory the
competitive load is seeking electric service, chooses in writing not
to compete for said competitive load or does not respond within
thirty (30) days of receiving written notice by the customer, the
terms of this subsection shall not apply.
G. Each retail electric service provider extending service to
an electric consuming facility pursuant to subsection F of this
section shall, on or before January 31 each calendar year, submit a
comprehensive report to the Corporation Commission that demonstrates
compliance that the tariffs assessed pursuant to subsection F of
this section are cost-of-service based and are not subsidizing other
rate classes or being subsidized by other rate classes. The
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Commission shall promulgate rules as to what data or information
retail electric providers shall provide in the annual report.
SECTION 2. This act shall become effective November 1, 2025.
60-1-10560 JBH 01/03/25