The Oklahoma House of Representatives passed SB998 on Tuesday, enabling utilities to raise rates during ongoing construction projects. The bill drew opposition from the Oklahoma Corporation Commission, with critics warning that ratepayers would be burdened with construction costs as utilities complete transmission projects.

Rep. Trey Caldwell, R-Faxon, defended the bill, explaining that once the corporation commissioners approve a utility’s transmission project, ratepayers could be required to pay for construction costs immediately. He emphasized that the bill would help reduce overall costs for ratepayers.

“This piece of legislation will lower the overall cost to your mom and pop ratepayer when it comes to the additional costs that are coming,” Caldwell said. “Whether we do nothing or if we do something, there will be a plethora of generation, transmission, and distribution needs across the state of Oklahoma over the next decade.”

However, some lawmakers expressed concerns about the impact on consumers. Rep. Forrest Bennett, D-Oklahoma City, argued that the bill would benefit utilities at the expense of ratepayers, particularly because many utilities did not prepare adequately for Winter Storm Uri in 2021, leaving ratepayers to cover the resulting costs.

“We should be asking a lot more, a lot more of these utilities—we should expect a lot more responsibility from them,” Bennett stated. “I fundamentally disagree that the ratepayer should be on the hook for this, especially with the sweetheart deals the utilities have.”

Rep. Nick Archer, R-Elk City, echoed Bennett’s sentiments, arguing that while families across Oklahoma are tightening their budgets, regulated monopolies are reporting record earnings. Archer contended that the bill would guarantee profits for utilities and reduce regulation, ultimately benefiting companies that already have a monopoly on services.

“While families are tightening their budgets—all across the state, regulated monopolies were reporting record earnings—they’re not struggling, they’re thriving,” Archer said. “That’s not regulation. It’s guaranteed profit on all of our ratepayers.”

Despite these concerns, Rep. Caldwell insisted that the bill would benefit Oklahoma ratepayers in the long run.

“A vote yes for this bill is a vote to lower utility costs across the state of Oklahoma—in the long term, it will save ratepayers money,” Caldwell said.

The bill passed with a 48-36 vote in the House and was returned to the Senate. However, the House did not approve the emergency clause on the bill. The Senate had previously approved the measure by a 26-20 vote.

Summary of the Vote

• Yeas (48): Includes Rep. Trey Caldwell, Rep. Shaw, Rep. Steagall, and others.
• Nays (36): Includes Rep. Forrest Bennett, Rep. Nick Archer, and others.
• Excused (14): Includes Rep. Adams, Rep. Blair, and others.

Originally reported by OK Energy Today.