Okla. Admin. Code § 165:5-7-60

Current through Vol. 42, No. 3, October 15, 2024

Section 165:5-7-60 - Reciprocity of final orders between states - electric companies

To facilitate the efficient use of resources for the benefit of ratepayers, when any electric company serves less than ten percent (10%) of its total customers or five hundred (500) of its members for rural electric cooperatives within the State of Oklahoma, the electric company may elect to allow all or a portion of the rates, charges, and terms and conditions of service within the Oklahoma portion of such service territory be those prescribed by the regulatory agency of the adjacent state within which the central office of the electric company is located; provided that, to demonstrate this election:

(1) The electric company shall file before the Commission an application to adopt the rates, charges, and terms and conditions of service prevailing in an adjacent state within ten (10) business days after the initiation of a ratemaking proceeding before the regulatory agency of the adjacent state. The electric company shall also file all pleadings and exhibits with this Commission and provide to the Office of the Attorney General of Oklahoma within ten (10) days subsequent to filing the pleadings and exhibits with the adjacent state where such central office or offices are located.

(2) The electric company shall provide notice to the individual customers located within Oklahoma, by direct mail and/or bill insert, concerning any hearing set before the Commission to adopt the rates, charges, and terms and conditions of service pursuant to this Section, including notice that a protest may be filed with the Commission's Court Clerk.

(3) Such rates, charges, and terms and conditions prescribed by an order of the regulatory agency of such adjacent state, after hearing on the merits have been held in such adjacent state, shall be filed with the Corporation Commission of the State of Oklahoma, along with the final order and recommendation of the administrative law judge, if any, of the regulatory agency of the adjacent state.

(4) To ensure that rates and terms and conditions of service resulting from this Section are just and reasonable and consistent with Oklahoma law and prevailing Corporation Commission policy, the electric company shall also file the following:

(A) A statement or testimony clearly describing the methods and standards relied upon in the ratemaking proceeding in the adjacent state, specifying any distinctions between the methods and standards prevailing in Oklahoma and in that adjacent state;

(B) A statement or testimony clearly describing how costs were allocated between Oklahoma customers and customers in other jurisdictions during the proceedings in the adjacent state; and

(C) A statement or testimony clearly describing any deviation from the Electric Utility Rules, OAC 165:35, or other applicable rules prescribed by the Commission, that would result from the use of the rates, charges, and terms and conditions of service in the adjacent state.

(5) Upon the submission of all filings identified in paragraphs 3 and 4 above, the Commission shall hold a hearing to receive testimony and/or statements from interested parties concerning if adjustments should be made to the rates, charges, and terms and conditions of service set in the adjacent state to set just and reasonable rates, charges, and terms and conditions of service consistent with Oklahoma law and prevailing Corporation Commission policy.

(6) If the Commission fails to enter a final order determining the rates, charges, and terms and conditions of service of an electric company pursuant to this Section within one hundred twenty (120) days after the submission of all filings identified in paragraphs 3 and 4 above, the electric company may impose interim rates not to exceed the rates listed on the filed rates and charges approved by the final order of the regulatory agency of the adjacent state, subject to being refunded by order of the Commission once a final order has been entered.

(7) The rates, charges, and terms and conditions of service prescribed by a final order of the regulatory agency of an adjacent state shall not be adopted by the Commission if:

(A) The electric company has not filed before the Commission, within the last four (4) years, an application under this Section or an application under the Commission's Minimum Standard Filing Requirements In Support of a Request by a Public Utility Doing Business in Oklahoma for a Proposed General Rate Change, OAC 165:70; or

(B) The rates resulting from the order would result in an average increase of more than ten percent (10%) above the currently applicable rates for the electric company's customers in Oklahoma.

Okla. Admin. Code § 165:5-7-60

Amended at 27 Ok Reg 2098, eff 7-11-10

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015

Amended by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/11/2017

Amended by Oklahoma Register, Volume 40, Issue 24, September 1, 2023, eff. 10/1/2023