Last summer, representatives from the state’s largest utility companies and power grid operator told Oklahoma regulators of an incoming surge in electricity demand.
“We look at our future demand, it is increasing exponentially,” said Matthew Horeled, vice president of regulatory and finance for the Public Service Company of Oklahoma. “This is the revolution that we've all been talking about with load growth that we're seeing on our system.”
With an electric revolution on the horizon, utilities are investing in more generation and grid upgrades to keep up.
Oklahoma isn’t alone in expecting a massive amount of energy demand in the coming years. Facilities like data centers are being proposed across the country, and they require significant amounts of energy. Pew Research Center estimates data centers accounted for 4% of the nation’s electricity consumption in 2024. By 2030, that figure could grow by 133%,.
Data from the U.S. Energy Information Administration (EIA) show electricity rates increased faster than inflation between 2022 and 2025. While data centers are a large part of the jump, there are other reasons behind higher monthly bills.
“We're seeing more investment in the transmission grid, both investment in the transmission grid that's associated with data center load growth and not,” said Abe Silverman, research scholar at Johns Hopkins University and principal of Silvergreen Energy Consulting. “So, we're seeing that is coming in and hitting consumers, and we're also seeing an increase in a lot of the distribution grid costs.
“So all of these things, in part driven by inflation, in part driven by supply chain challenges, are all getting together to make the affordability story really challenging.”
The Oklahoma Corporation Commission – which regulates the state’s utilities – is currently reviewing a rate case from PSO that would increase bills for average residential customers using 1,100 kilowatt-hours by 15%, or $25 a month. The utility company states the money would be used for grid upgrades, its tree trimming program and energy generation.
Before that hike hits monthly bills, the commission will scrutinize the request and financial information provided by the company. Speaking generally, Mark Argenbright, director of the OCC’s Public Utility Division, said rate cases often conclude with different totals than they began with.
“ The reality is there's a long road the company has to go down to justify that, and historically they have not been able to support the full amount that they've asked for,” he said.
Last November, Oklahoma Gas and Electric was approved for new generation projects. The utility company has also renewed a request to the commission to charge customers for its natural gas projects before they begin generating electricity.
Data centers – and other big energy consumers – are still plugging into Oklahoma
Several communities, like Sand Springs, Coweta and Yukon, have recently considered data center proposals. Google already operates a data center in Pryor and has plans for facilities in Stillwater and Owasso. It also proposed projects in Muskogee County.
According to the state’s grid operator, the Southwest Power Pool, there are 12 large load customers in the queue for Oklahoma as of late January.
Several legislators have introduced bills to increase transparency of the industry in Oklahoma and protect consumers from higher electricity rates. After hosting an interim study on data centers in the fall, Rep. Amanda Clinton, D-Tulsa, filed a package of legislation with directions for state regulators to keep track of the facilities.
Clinton’s House Bill 3392 would require the commission to conduct a study on the impacts of large electricity users. The findings would focus on electricity rates, system reliability, energy generation capacity and infrastructure investment needs. Another, House Bill 3394, would direct the OCC to keep a detailed directory of large-scale data centers.
House Bill 3397 asks the commission to create a separate classification for big energy consumers like data centers. The legislation is meant to prevent other classes of rate payers, like residential homes, from paying “unwarranted costs.”
“ I don't believe that, particularly our low-income and fixed-income folks should be paying for the electricity needs of Google and Meta and Amazon,” she said.
Senate Bill 1488, authored by Sen. Kendal Sacchieri, R-Blanchard, would place a moratorium on new builds until November 1, 2029. In the meantime, the OCC would be instructed to put together a study on impacts to water supply, utility rates and property values.
Rep. Brad Boles, R-Marlow, filed House Bill 2992, titled the “Data Center Consumer Ratepayer Protection Act of 2026.” The measure’s current language would require electricity companies to establish specific terms and conditions for large consumers.
Both PSO and OG&E are already working on terms and conditions through tariffs for their large load consumers. Argenbright said the corporation commission will later review the contracts for approval.
Ken Miller, senior vice president of public and regulatory affairs for OG&E, said the company is shaping a large load tariff for Google’s Stillwater data center. The utility plans to use the tariff as a basis for future agreements.
“ Our intent is to protect customers from costs that would not benefit them and would only benefit data centers or other large load customers,” he said.
PSO spokesperson Matt Rahn said the company requires customers like data centers to cover costs for plugging into the grid. It’s also working on a large load tariff to “apply consistently across our rate structure.”
“Through thoughtful planning, regulatory oversight, and clear cost‑responsibility structures, PSO ensures that economic development supports community growth while maintaining affordability and reliability for our existing customers,” he said.
Other states, including Kansas and Missouri, have already introduced large load tariffs for data centers. Energy researcher Abe Silverman said the agreements could be useful tools to protect consumers.
“Knock on wood, they seem to have at least set the stage for solving the problem,” he said.
“And it, kind of, now has become a bit of a race between how quickly states can move forward with these large load tariffs and protect consumers versus the speed at which the data centers are coming online.”
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