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ENGROSSED HOUSE
BILL NO. 3989 By: Caldwell (Trey) and
Dobrinski of the House
and
Green of the Senate
An Act relating to the Retail Electric Supplier
Certified Territory Act; amending 17 O.S. 2021,
Section 158.25, as amended by Section 1, Chapter 95,
O.S.L. 2023 (17 O.S. Supp. 2025, Section 158.25),
which relates to exclusive rights within territory;
modifying when certain electric retail suppliers can
extend certain services; requiring certain fees under
certain circumstances; excluding specific sources of
funding for those fees; 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. 2025,
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
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that any retail electric supplier may extend its facilities through
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
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which such service is being lawfully furnished by another retail
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 actual total metered load for
initial full operation of such electric-consuming facility is to be
1,000 kw or larger. After August 26, 2026, a retail electric
supplier shall provide notice to the Oklahoma Corporation Commission
that it plans to serve a new electric-consuming facility under this
large load exception. Together with its notice, it shall include
written certification from a licensed professional engineer that the
load will reach or is reasonably expected to reach or exceed 1,000
kw of actual metered load during the first twenty-four (24) months
of commercial operation. At the end of the twenty-four-month
period, the Commission or the incumbent utility may request
verification, and obtain records through a Commission proceeding to
determine whether the 1,000 kw level was reached. If that load
fails to reach the 1,000 kw load during the twenty-four (24) months
after commercial operation, then said retail electric supplier shall
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pay a penalty of one percent (1%) of sales to that electric-
consuming facility per annum to the incumbent retail electric
supplier until such time as it does reach 1,000 kw. The penalty may
not be recovered directly from ratepayers or members, and shall be
paid from the profits or margins of the utility making the payments.
The Corporation Commission shall enforce this penalty upon
application of an interested party and may waive the penalty upon a
finding that the utility serving said load was not at fault in
serving said load which did not reach 1,000 kw for reasons
unforeseen when service was extended. This subsection shall not
apply to any such load served before August 26, 2026.
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.
SECTION 2. This act shall become effective November 1, 2026.
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Passed the House of Representatives the 25th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2026.
Presiding Officer of the Senate