Oklahoma’s energy regulators are preparing to make a critical decision that could affect nearly a million electricity customers. The Oklahoma Corporation Commission (OCC) is set to vote on Oklahoma Gas & Electric’s (OG&E) request to begin charging ratepayers for new construction before the projects are completed.
The proposal centers around OG&E’s plan to install two new natural gas turbines at its Horseshoe Lake power plant in eastern Oklahoma, with a combined cost of approximately $506 million. In addition to building new infrastructure, the company is also pursuing two long-term capacity purchase agreements with an energy storage facility and a power plant in Kiowa.
If approved, customers would begin seeing a 60-cent increase on monthly bills starting in 2026, with that figure rising to more than $4 per month by 2031.
To justify the rate hike, OG&E is invoking a recently passed law that requires the Corporation Commission to allow utilities to recover costs for natural gas construction upfront, rather than waiting until after completion. The OCC had originally opposed the law, warning that such provisions would push higher costs onto consumers.
However, OG&E executives argue that early cost recovery would ultimately save customers money over time.
“We appreciated the opportunity during the hearing to reiterate that this overall project is designed to meet capacity requirements for OG&E to deliver reliable electricity to 909,000 customers every day,” said Ken Miller, vice president of public and regulatory affairs, in an email. Representatives also say that beginning charges early would save customers $176 million in interest over the life of the project.
During an Oct. 8 public meeting, Oklahoma residents shared concerns over rising utility bills.
Stephanie Burdine of Yukon said even small increases can strain household budgets.
The increase may not sound expensive relative to some larger costs, “but $5 a month to older people or a single mother with kids, that does amount to something.” She urged commissioners: “And I hope you all will consider the public, the citizens, and not the corporations.”
Derek Rogers from Haskell, who runs a small manufacturing business, said energy costs are already forcing him to scale back.
“Like many small businesses and families across our state, we are struggling under rising electricity costs and simply cannot withstand another increase.”
According to an OCC spokesperson, commissioners are expected to issue a final order within the next couple of weeks. If approved, the ruling could set a significant precedent for how energy infrastructure is financed in Oklahoma—shifting more of the upfront burden onto customers, even before power plants are online.
Originally reported by Chloe Bennett-Steele, StateImpact Oklahoma in KGOU.
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