Oklahoma House Bill HB2112

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Corporation Commission; requiring promulgation of certain rules and procedures; requiring electric utility companies to bury certain lines underground; effective date.

Impact

This legislation aims to enhance the reliability and safety of Oklahoma's electric distribution system by reducing the risks associated with overhead lines, which are vulnerable to weather-related damages and other hazards. Transitioning to underground lines is expected to minimize outages during severe weather events, thereby improving overall service continuity for consumers. Furthermore, it creates a framework for how electric utilities can recover costs associated with this significant infrastructural change.

Summary

House Bill 2112 mandates that electric utility companies in Oklahoma must convert their existing overhead distribution and transmission lines to underground power lines. The bill directs the Oklahoma Corporation Commission to create the necessary rules and procedures for this transition. Additionally, it provides allowance for electric utilities to submit rate adjustment applications to recover costs associated with these necessary capital expenditures. The effective date of the legislation is set for November 1, 2021.

Contention

Concerns regarding the bill primarily revolve around the financial implications for both utility companies and consumers. Stakeholders may debate the cost of implementing such a large-scale shift to underground lines against the potential long-term benefits. There may also be discussions about the regulatory oversight capabilities of the Oklahoma Corporation Commission in managing these transitions, especially regarding the approval of rate adjustments. These aspects could become focal points of contention if the legislation is enacted, as they directly affect utility management and consumer costs.