OG&E Winter Storm Recovery Plan To Be Submitted To State's Supreme Court

Oklahomans are waiting to hear what the state Supreme Court has to say about OG&E's plan to recoup millions they spent during the February 2021 winter storm.

"We've heard it said that OG&E is not profiting, but somebody is," former State Representative and current OG&E customer Mike Reynolds said.

"Even if these ratepayer bonds were not issued that doesn't mean the obligation goes away," Oklahoma Development Finance Authority attorney Jered Davidson said.

A Supreme Court referee heard arguments Wednesday from OG&E customers and Davidson.

The issue: OG&E's plan to recover nearly $800 million through ratepayer backed bonds.

ODFA's attorney claims if the typical process was followed, customers’ bills would have been quickly impacted.

"It could have potentially added thousands of dollars each month to a customer's utility bill over the course of the year to repay that obligation," Davidson said.

Extreme cold in 2021 forced utility companies to pay skyrocketing rates for natural gas.

A state law passed last year allows energy companies to have customers pay extra to cover the costs over numerous decades.

OG&E's plan, approved by the state's Corporation Commission, would increase customers' bills monthly by about $2 spread out over 28 years.

Several customers protesting the plan said the process is unconstitutional. Many have major concerns with the plan and the total dollar amount.

"It's like your rent got raised but you're not allowed to move," University of Central Oklahoma associate professor of economics Dr. Travis Roach said.

Roach told News 9 that this plan significantly pushes any risk on to customers and locks them in.

OG&E isn't alone. The corporation commission just approved Oklahoma Natural Gas' plan that uses the same bond process.

"This is great for you if you're a shareholder," Dr. Roach said. “This is awful for you if you pay a monthly bill.”

The decision involving OG&E will now be submitted to the State Supreme Court for a decision.