Read the full stored bill text
Req. No. 3551 Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1766 By: McIntosh
AS INTRODUCED
An Act relating to the Corporation Commission;
defining terms; requiring certain consideration;
establishing criteria for certain petition; requiring
establishment of certain evidence; requiring the
Corporation Commission to make certain finding;
establishing requirements for certain approval;
construing provision; clarifying applicability;
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 295 of Title 17, unless there is
created a duplication in numbering, reads as follows:
A. As used in this section:
1. “Bulk-power system” means:
a. facilities and control systems necessary to operate an
interconnected electricity energy transmission network
or portion thereof, and
b. electric energy from generation facilities needed to
maintain transmission system reliability;
Req. No. 3551 Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. “Capacity” means the fraction of the installed capacity of
an electric generation unit which can be relied on at a given time
to meet demand and is frequently measured either in terms of the
physical output capacity of the unit such as kilowatt (kW), megawatt
(MW), or gigawatt (GW) or as the fractional output percentage of the
asset’s nameplate capacity;
3. “Effective load or demand carrying capacity” means an
electric generation unit’s contribution to reliability based on the
incremental quantity of load or demand that can be satisfied by
adding that resource asset to the electric power grid;
4. “Electric generation unit” means any asset used to generate
or store electricity, regardless of fuel source including, but not
limited to, coal, natural gas, nuclear fuel, hydroelectricity,
geothermal, wind, solar, hydrogen, or other applicable technologies.
It shall include, but is not limited to, pumped hydroelectric
storage, lithium-ion batteries, and any other device or asset used
to store energy for later use as electricity;
5. “Electric utility” means any person, firm, partnership, or
corporation that furnishes retail electric service to the public in
this state and is subject to the regulatory jurisdiction of the
Corporation Commission;
6. “Independent system operator” means a regional transmission
organization, independent system operator, independent transmission
provider, or other transmission organization finally approved by the
Req. No. 3551 Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Federal Energy Regulatory Commission for the operation of
transmission facilities;
7. “Reliability” means a requirement, approved by the Federal
Energy Regulatory Commission, to provide for reliable operation of
the bulk-power system. It includes requirements for the operation
of existing bulk-power system facilities, including cybersecurity
protection, and the design of planned additions or modifications to
such facilities to the extent necessary to provide for reliable
operation of the bulk-power system. It does not include any
requirement to enlarge such facilities or to construct new
transmission capacity or generation capacity;
8. “Reliable operation” means operating the elements of the
bulk-power system within equipment and electric system thermal,
voltage, and stability limits so that instability, uncontrolled
separation, or cascading failures of such system will not occur as a
result of a sudden disturbance, including a cybersecurity incident,
or unanticipated failure of system elements;
9. “Retire” means any scale down, scale back, intent for lesser
usage, or any other similar action with respect to an electric
generation unit or a transmission asset;
10. “Transmission asset” means any and all equipment necessary
to transmit electricity from a new or existing electric generation
unit to the distribution network used to provide electricity to an
end consumer. It includes, but is not limited to, any and all
Req. No. 3551 Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
substations, inverters, transformers, transmission towers, and
additional transmission mileage operating above sixty-nine kilovolts
(69 kV); and
11. “Transmission organization” means a regional transmission
organization, independent system operator, independent transmission
provider, or other transmission organization finally approved by the
Federal Energy Regulatory Commission for the operation of
transmission facilities.
B. When a public utility requests a rate adjustment, the
Corporation Commission shall take into consideration the bulk-power
system reliability, energy capacity, on-demand dispatch ability,
useful life, intermittent operational nature, overall operational
costs including back end disposal costs, and environmental
compliance costs of each and every asset used for the production or
transmission of electric energy including, but not limited to, any
electric generation unit, transmission asset, and other related
assets in its determination of whether the costs and expenses of
related costs and expenses are fair, just, reasonable, and should be
approved for rate recovery.
C. In addition to the requirements of a petition requesting the
Commission to examine and determine the reasonableness of a proposed
increase in rates and charges pursuant to Section 152 of Title 17 of
the Oklahoma Statutes, the petition shall include the following:
Req. No. 3551 Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1. A statement for each electric generation unit that is
proposed to be added to the generation portfolio which shall
include:
a. an evaluation of each generation unit’s potential
ability to reliably meet the applicant’s capacity
contributions to bulk-power system reliability during
times of peak demand,
b. an assessment of the potential estimated percentage
contribution of each generation unit in meeting the
applicant’s capacity contributions to bulk-power
system reliability during times of peak demand, and
c. a narrative that outlines the addition of each
electric generation unit when considered in
conjunction with any proposed retirement with respect
to any other electric generation and how this will
impact the applicant’s ability to meet capacity
contributions to bulk-power system reliability during
times of peak demand;
2. A statement for each electric generation unit that the
applicant proposes to retire which shall include:
a. an evaluation of each generation unit’s current
ability to reliably meet the electric utility’s
capacity contributions to bulk-power system
reliability during times of peak demand,
Req. No. 3551 Page 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. an assessment of the current estimated percentage
contribution of each generation unit in meeting the
applicant’s capacity contributions to bulk-power
system reliability during times of peak demand, and
c. a narrative that outlines how the scale down, less
frequent utilization, retirement, or removal of each
generation unit from the applicant’s portfolio when
considered in conjunction with any proposed addition
of an electric generation unit to the applicant’s
portfolio will impact the applicant’s ability to meet
its capacity contributions to bulk-power system
reliability during times of peak demand.
The statements in each of paragraphs 1 and 2 of this subsection
shall, to the best of the applicant’s ability, address the effective
load carrying capacity or effective demand carrying capacity of the
electric generation unit. Such information may be indicated as the
unforced or accredited capacity of the asset and the statement may
be provided by a transmission organization, the applicant, or an
agent thereof;
3. A statement for each transmission asset the applicant
proposes to build or acquire that includes an evaluation of each
transmission asset’s ability to meet its capability to support the
applicant’s capacity contributions to bulk-power system reliability
during times of peak demand. The statement shall, to the best of
Req. No. 3551 Page 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the applicant’s ability, address how the transmission asset will
support the applicant’s capacity contributions to bulk-power system
reliability during times of peak demand. Such statement may be
provided by a transmission organization, the applicant, or an agent
thereof; and
4. A statement for each transmission asset the applicant
proposes to retire that includes an evaluation of each transmission
asset’s current ability to meet its capability to support the
applicant’s capacity contributions to bulk-power system reliability
during times of peak demand. Such statement may be provided by a
transmission organization, the applicant, or an agent thereof.
D. 1. The Corporation Commission shall not authorize or
approve the retirement of an electric generation unit in this state
until the applicant establishes, by clear and convincing evidence,
that it has available an equivalent megawatt capacity of
dispatchable firm power generation as replacement power in the
result of the proposed electric generation unit retirement. The
available megawatt capacity of dispatchable firm power may be
established by:
a. the construction and operation of a new generation
asset either within this state or outside this state,
b. any purchase power agreement, or
c. any other arrangement, including a combination of
subparagraphs a and b of this paragraph, that the
Req. No. 3551 Page 8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Commission determines will meet the applicant’s
capacity contributions to bulk-power system
reliability during times of peak demand.
2. The Corporation Commission may direct an electric utility to
submit an analysis of the actions necessary to extend the life of
each generating unit in the electric utility’s portfolio beyond the
planned retirement date for each generating unit. Such analysis may
include any matters as deemed necessary by the Commission.
E. Any applicant for an adjustment of electric utility rates
shall establish by clear and convincing evidence that:
1. Each electric generation unit or transmission asset that it
proposes to build or acquire shall fully meet its capacity
contributions to bulk-power system reliability during times of peak
demand; and
2. Each electric generation unit or transmission asset that it
proposes to retire will not negatively impact the applicant’s
ability to fully meet its capacity contributions to bulk-power
system reliability during times of peak demand.
F. 1. If the Corporation Commission approves an adjustment of
rates, it shall include in a separate finding that the applicant
meets the requirements pursuant to this section.
2. If the Commission finds that an electric generation unit or
transmission asset that the applicant proposes to build or acquire
fails to meet the requirements of this section, the Commission shall
Req. No. 3551 Page 9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
determine what portion, if any, of the costs and expenses related to
and associated with that electric generation unit or transmission
asset are fair, just, and reasonable, and should be eligible for
rate recovery as well as the portion, if any, of the costs and
expenses that are not fair, just, or reasonable, and should not be
eligible for rate recovery.
3. The Commission, in its discretion, may approve in part, deny
in part, approve, or deny any portion of an applicant’s petition.
4. In any order approving an adjustment of rates, the
Commission shall include in a separate and distinct paragraph in
boldface type for each of the following that describes:
a. the total dollar amount of the increase in approved
rate recovery,
b. whether a rate of return on any electric generation
unit or transmission asset has been approved, the
amount of the rate of return reflected as a percentage
of the total dollar amount approved for such return
and the duration of such return, and
c. a summary of the total amount of the electric
generation unit and transmission asset costs and
expenses, if any, that have been denied for rate
recovery.
G. Nothing in this section shall be construed to require the
disclosure of confidential information.
Req. No. 3551 Page 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
H. Any agreed order of settlement or similar instrument among
the parties shall not circumvent the requirements of this section or
any other applicable law and shall not abrogate the responsibility
of the Commission to make the findings pursuant to subsection F of
this section.
SECTION 2. This act shall become effective November 1, 2026.
60-2-3551 CN 1/14/2026 3:20:18 PM