Oklahoma Corporation Commissioners Reject OG&E Rate Increase for New Power Plants Amid Appeal Plans
Oklahoma Corporation Commissioners voted 2-1 to reject OG&E's request for a utility rate increase tied to two new power generation facilities. The utility plans to appeal the decision to the Oklahoma Supreme Court, asserting it meets state law for rate hikes linked to Construction Work In Progress (CWIP). The decision may impact $173 million in potential savings for customers over the life of the units. Consumer advocates argue the law is unconstitutional and that OG&E should not pass costs onto consumers for data center power needs.
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Oklahoma Corporation Commissioners voted 2-1 against OG&E's utility rate increase request for two new power generation facilities. This decision tests a law allowing utilities to request rate hikes for construction costs before completion.
OG&E plans to appeal the ruling to the Oklahoma Supreme Court, asserting compliance with CWIP regulations, which could save customers $173 million. The rejection has been supported by consumer advocates who argue against subsidizing data centers with utility costs.
The two new units are expected to add 850 megawatts of power, addressing growing demand from data centers. A pledge from major tech companies aims to alleviate concerns over rising electricity costs linked to their operations.
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