The Oklahoma Corporation Commission voted Monday to approve PSO’s request to invest in two natural gas units, three battery storage systems and purchase power agreements from existing wind and gas facilities.
The cost of the projects totals $1.2 billion, but customers won’t see immediate changes on their bills.
“The order gives PSO certainty to begin these projects and at the same time ensures that costs are paid primarily by the large-load customers,” the Corporation Commission wrote in a news release.
A document filed with the commission in September shows the utility initially estimated average customers would see an increase of about $10.34 on monthly bills. A spokesperson for PSO said the final approval will likely result in lower average rates than previously thought.
The final order voted upon by the commissioners requires PSO to adjust rates annually as new demand is added to the grid. The utility will also have new conditions for operations like data centers to prevent grid connection costs from shifting to households and businesses.
Commissioner Kim David said the customer protections included in their approval order meet requirements set in recently-passed state legislation. House Bill 2992, authored by Rep. Brad Boles, R-Marlow, calls for the commission to protect household rates as more data centers plug into the grid. The bill was signed by Gov. Kevin Stitt on Monday.
Part of the utility’s request is to finance its natural gas projects using construction-work-in-progress, or CWIP. The mechanism allows companies to bill customers for new energy generation before the units are in service. Oklahoma law requires the Corporation Commission to approve CWIP for natural gas projects.
The commissioners granted CWIP, but PSO will not be able to begin collecting money until after it receives rezoning approval in Rogers County for projects at its Northeastern plant near Oologah.
Commissioners David and Todd Hiett voted in favor of granting approval. Commissioner Brian Bingman voted against it, saying the investment in battery energy storage facilities totaling $715 million is expensive and risky because it would be the first time PSO would operate and maintain them.
In a statement, PSO wrote the projects will help the utility meet demand and provide customer reliability.
“This approval supports PSO’s responsibility to serve current customers while continuing to meet the needs of growing communities, new homes and businesses across Oklahoma,” a spokesperson said.
The projects will become operational at different times, PSO said, but are all expected to finish by 2029.
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