Agreement filed with the Oklahoma Corporation Commission would reduce the estimated monthly increase for a typical household to about $2.45 while leaving separate rules for future high-power customers unresolved.
OKLAHOMA CITY — A proposed settlement filed Friday in Public Service Company of Oklahoma’s base-rate case would reduce the estimated monthly increase for a typical residential customer from about $25 to about $2.45 if approved by the Oklahoma Corporation Commission.
The proposed settlement still requires Corporation Commission approval, and a separate proposal governing some of the state’s largest future electricity users remains unresolved.
According to PSO, the estimated $2.45 monthly increase applies to a residential customer using 1,100 kilowatt-hours of electricity each month.
Compared with PSO’s original request, the proposed settlement would substantially reduce the amount of additional revenue the utility could collect through base rates. The proposal would reduce PSO’s requested increase from about $606.9 million to $447.1 million, which PSO said would result in an estimated overall bill increase of about 5 percent.
Settlement would reduce proposed increase
The proposed settlement was negotiated by PSO, the Oklahoma Corporation Commission’s Public Utility Division, the Attorney General’s Office and other parties participating in the case. The Corporation Commission must decide whether to approve the agreement.
PSO said the proposed settlement was signed by the OCC Public Utility Division, the Attorney General’s Office, AARP Oklahoma, the Petroleum Alliance of Oklahoma and the utility. The Petroleum Alliance did not join one provision involving transmission-cost allocation. PSO said several additional parties indicated they would not oppose the agreement.
Large-load proposal remains unresolved
While the proposed settlement addresses the requested rate increase, it leaves unresolved another issue involving some of the state’s largest future electricity users.
The proposed settlement does not address future large industrial customers such as data centers or the proposed Emirates Global Aluminum smelter near Inola. PSO has maintained throughout the case that its rate request reflects investments already made to serve existing customers, not future infrastructure for those projects.
The proposed large-load tariff will be considered separately because it establishes how future high-demand customers would receive electric service and pay for it rather than changing current electric rates.
Lawmakers approved the Data Center Customer Ratepayer Protection Act of 2026 earlier this year, and Gov. Kevin Stitt signed it into law. The measure requires special service agreements for certain customers with exceptionally large electricity demands to help protect existing residential, commercial and industrial customers from paying for infrastructure if those projects never materialize or later reduce their electric demand.
PSO said it drafted the proposed Large Load Power tariff to comply with the new law by helping ensure large customers cover the costs they create while contributing to long-term affordability and system reliability.
Customers needing more than 10 megawatts of new electric capacity would face additional contract and financial requirements. Those requiring more than 75 megawatts would be subject to additional protections established under the new law.
The proposal would require qualifying customers to provide financial collateral, sign at least 10-year service agreements, give 60 months’ notice before leaving the system and meet minimum billing requirements. It also would require those customers to pay costs directly attributable to their service, along with an allocated share of broader system costs.
PSO said those provisions are intended to protect existing customers if a large industrial project is canceled or significantly reduces its electric demand.
An Administrative Law Judge is scheduled to begin hearing evidence Tuesday on the large-load tariff and other remaining issues. The Corporation Commission will later decide whether to approve the proposed settlement and resolve the remaining contested issues.
