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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3397 By: Clinton
AS INTRODUCED
An Act relating to data centers; defining terms;
requiring Corporation Commission provide for certain
classification of service; requiring classification
of service be distinct from other classifications and
have its own tariff schedule; listing requirements
for tariff schedule; requiring Commission make
certain proposed tariff considerations regarding
rates; exempting certain entities from using
classification of service; providing for certain
expiration; requiring Commission to direct certain
contracts be entered into between entities; listing
requirements for contracts; allowing certain charge
to be included in contract; requiring notice of delay
under certain conditions; allowing contracts to
contain certain terms and conditions; stating
contract shall not prevent Commission from carrying
out its duties; providing for codification; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 860 of Title 17, unless there is
created a duplication in numbering, reads as follows:
A. For the purposes of this act:
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1. "Costs of serving" includes, as applicable, the costs
incurred by an electric company in providing transmission,
distribution, energy, capacity or ancillary electricity services,
and any related costs or associated risks with serving a class of
retail electricity consumers or a retail electricity consumer;
2. "Electric company" means an entity engaged in the business
of distributing electricity to retail electricity consumers in this
state, but does not include a consumer-owned utility;
3. "Facility" means all buildings, equipment, structures, and
other stationary items that are located on a single site or on
contiguous or adjacent sites and that are owned or operated by the
same person or by any person who controls, is controlled by, or is
under common control with such person;
4. "Large energy use facility" means a facility that uses or is
able to use twenty (20) megawatts or more and is primarily engaged
in providing a service described under code 518210 of the 2022 North
American Industry Classification System; and
5. "Retail electricity consumer" means the end user of
electricity for specific purposes such as heating, lighting, or
operating equipment, and includes all end users of electricity
served through the distribution system of an electric utility,
whether or not each end user purchases the electricity from the
electric utility.
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B. The Corporation Commission shall provide for a
classification of service for retail electricity consumers that are
large energy use facilities. The classification of service must be
separate and distinct from classifications of service for other
commercial or industrial retail electricity consumers and have its
own tariff schedule. Any tariff schedule adopted by the Commission
for the class shall:
1. a. allocate the costs of serving the class of retail
electricity consumers that are large energy use
facilities to the class in a manner that is equal or
proportional to the costs of serving the class, or
b. directly assign the costs of serving a retail
electricity consumer that is a large energy use
facility to the retail electricity consumer;
2. Meet the same conditions the Commission requires for a
contract under division 5 of subparagraph a of paragraph 2 of
subsection A of Section 3 of this act; and
3. Mitigate the risk of:
a. other classes of retail electricity consumers paying
unwarranted costs, and
b. shifting the costs, in an unwarranted manner, of
serving a retail electricity consumer that is a large
energy use facility to other classes of retail
electricity consumers, including costs of an electric
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company to meet load requirements resulting from the
provision of electricity service to a retail
electricity consumer that is a large energy use
facility.
C. In deciding whether to approve a proposed tariff schedule of
an electric company for a classification of service described under
subsection B of this section, the Commission shall consider whether
the rates:
1. Result in, or have the potential to result in, increased
costs or unwarranted risk to other retail electricity consumers;
2. Provide for equitable contributions to grid efficiency,
reliability, and resiliency benefits; and
3. Meet any other conditions the Commission may require in the
public interest.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 861 of Title 17, unless there is
created a duplication in numbering, reads as follows:
An electric company and a retail electricity consumer that is a
large energy use facility are not required to use a classification
of service provided for under Section 1 of this act if the
Corporation Commission has not approved for the electric company a
tariff schedule for the classification of service. This section
shall cease to have the force and effect of law on January 1, 2029.
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SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 862 of Title 17, unless there is
created a duplication in numbering, reads as follows:
A. 1. The Corporation Commission shall require an electric
company that is providing electricity service to a retail
electricity consumer that is a large energy use facility to enter
into a contract with the retail electricity consumer that covers the
provision of the electricity service, including, as applicable,
transmission, distribution, energy, capacity, or ancillary
electricity services.
2. a. any contract for the provision of electricity service
entered into between an electric company and a retail
electricity consumer that is a large energy use
facility shall:
(1) be consistent with the criteria listed under
subsection C of Section 1 of this act,
(2) specify the duration of the contract and be for a
duration for ten (10) years or longer,
(3) specify the date or estimated date that the
electric company will begin to provide
electricity service to the retail electricity
consumer,
(4) obligate the retail electricity consumer to pay a
minimum amount or percentage, as determined by
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the Commission, based on the retail electricity
consumer's projected electricity usage for the
electricity services the electric company is
contracted to provide for the duration of the
contract, and
(5) meet any other conditions the Commission may
require in the public interest.
b. any contract for the provision of electricity service
entered into between an electric company and a retail
electricity consumer that is a large energy use
facility may include a charge for excess demand for
the electricity services the electric company is
contracted to provide that is in addition to the
tariff schedule.
B. If an electric company fails to begin to provide electricity
service on or by the date or estimated date specified in a contract
entered into under this section due to causes within the electric
company's reasonable control, the electric company shall provide the
retail electricity consumer notice of the delay as soon as
reasonably practicable. A contract entered into under this section
may include terms and conditions that address the possibility of a
delay due to causes within the reasonable control of the parties to
the contract.
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C. A contract, as described under subsection A of this section,
may not prevent the Commission from carrying out the Commission's
duties under this section or Section 1 of this act.
SECTION 4. This act shall become effective November 1, 2026.
60-2-15129 JBH 01/07/26