Oklahoma Senate Bill SB475

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Corporation Commission; exempting Distributed Energy Resource utility from the Retail Electric Supplier Certified Territory Act. Effective date.

Impact

The passage of SB475 will significantly change how schools and similar entities interact with energy generation regulations in Oklahoma. By exempting DER utilities from existing territory laws, the bill facilitates a more flexible approach to energy management, enabling these institutions to generate and use their electricity efficiently without being tied to traditional utility resource frameworks. This is particularly important for cost management and environmental sustainability.

Summary

Senate Bill 475 aims to exempt Distributed Energy Resource (DER) utilities from the constraints of the Retail Electric Supplier Certified Territory Act. This legislation allows DER utilities, which generate electricity on customer property for use by that customer, to operate more freely under state guidelines. Specifically, a DER utility must meet certain conditions, including filing for grid interconnection and submitting annual reports on the energy they generate.

Contention

While supporters of SB475 highlight its potential to empower schools by allowing them to harness their energy sources, there may be concerns about the oversight and regulation of these DER utilities. Critics may argue that reducing regulatory burdens could lead to potential risks in energy safety and reliability, as well as unintended consequences for traditional utility providers and their service areas. The defined limitations on customer eligibility and generation capacity present further discussions on how broadly the bill could affect stakeholders in the energy sector.