ENGR. S. A. TO ENGR. H. B. NO. 3053 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE AMENDMENT TO ENGROSSED HOUSE BILL NO. 3053 By: Boles and Williams of the House and Rader of the Senate An Act relating to energy; requiring Secretary of Energy and Environment to evaluate relationship of the Southwest Power Poo l and the state; requiring preparation of certain report; providing for staffing; requiring report encompass certain areas; providing report be completed by certain date; providing for distribution of report; providing for codification; and declaring an em ergency. AMENDMENT NO. 1. Page 1, strike the title, enacting clause and entire bill and insert “An Act relating to energy; requiring Corporation Commission to evaluate relationship between the Southwest Power Pool and the state; requiring preparation of certain report; establishing report contents; providing report be completed by certain date; providing for distribution of report; providing for codification; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: ENGR. S. A. TO ENGR. H. B. NO. 3053 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 294 of Title 17, unless there is created a duplication in numbering, reads as follows: A. The Corporation Commission shall coordinate with the regional transmission organization known as the Southwest Power Pool (SPP) to develop and provide a reporting of the regulatory and statutory frameworks addressing the rule of the SPP as it pertains to this state. The report shall provide a comprehensive ass essment of the impact of the SPP on the state ’s electricity infrastructure and areas in which the state may desire further evaluation. B. The report shall utilize the most recent twelve (12) months of available data and shall include and consider the foll owing: 1. An explanation of how decisions are made at the SPP, including the Regional State Committee (RSC), and the impact of such decisions on Oklahoma ratepayers; 2. The potential impact of decisions resulting from the SPP process, including the RSC, on the state budget; 3. The current use of intermittent power sources to meet base load capacity requirements and explanation on the SPP ’s decision- making processes regarding the use of these intermittent sources; 4. The studies and processes used by the SPP to assess and respond to demands, including transmission studies conducted; 5. Identification of SPP decisions and processes that may impact Oklahoma’s oil and natural gas industries; ENGR. S. A. TO ENGR. H. B. NO. 3053 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. Identification of areas in which Oklahoma stakeholders may benefit from additional information being shared on events occurring at the SPP; 7. The amount of power produced within Oklahoma that was transmitted outside of the state through the SPP for the calendar year ending December 31, 2023, the market value of s uch power, and any benefit of this transmission to Oklahoma ratepayers; 8. The cost, if any, that is built into the most recent rate cases with final orders previously before the Corporation Commission for the construction and maintenance of generation and transmission infrastructure which is used in whole or in part for the generation and transmission of power for sale outside of Oklahoma; and 9. An explanation of the level of input the Corporation Commission has on the processes and decisions of the SPP. C. 1. The Commission shall ensure the completion of the report no later than December 31, 2024. 2. A copy of the finalized report shall be submitted electronically to the following entities: a. the Governor, b. the Speaker of the House of Representative s, c. the President Pro Tempore of the Senate, d. the Chair of the Utilities Committee of the House of Representatives or successor committee, ENGR. S. A. TO ENGR. H. B. NO. 3053 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 e. the Chair of the Energy and Telecommunications Committee of the Senate or successor committee, and f. the Chair of the Energy and Natural Resources Committee of the House of Representatives or successor committee. SECTION 2. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval. ” Passed the Senate the 23rd day of April, 2024. Presiding Officer of the Senate Passed the House of Representatives the ____ day of _ _________, 2024. Presiding Officer of the House of Representatives ENGR. H. B. NO. 3053 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE BILL NO. 3053 By: Boles and Williams of the House and Rader of the Senate An Act relating to energy; requiring Secretary of Energy and Environment to evaluate relationship of the Southwest Power Pool and the state; requiring preparation of certain report ; providing for staffing; requiring report encompass certain areas; providing report be completed by certain date; providing for distribution of report; providing for codification; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as S ection 294 of Title 17, unless there is created a duplication in numbering, reads as foll ows: A. The Secretary of Energy and Environment shall lead the evaluation of the regulatory and statutory frameworks governing the relationship between the Southwest Power Pool (SPP) and the State o f Oklahoma. The objective of this evaluation is to prepare a comprehensive report containing recommendations aimed at enhancing the benefits for electricity ratepayers in Oklahoma by assessing the ENGR. H. B. NO. 3053 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 impact of the SPP on Oklahoma's electricity infrastructure and recommending improvements. The staff of the Oklahoma Corporation Commission shall provide support to the Secretary in conducting this evaluation. B. The report shall encompass the following areas for examination: 1. The impact of the SPP on Oklahom a ratepayers and the l evel of input from the Corporation Commission regarding SPP decisions; 2. Implications of SPP decisions on the Oklahoma state budget; 3. The reliance of SPP base load capacity on intermittent power sources; 4. The current availabil ity of SPP base load p ower generation to meet existing demand; 5. Future projections and adequacy of planned SPP base load power generation to meet anticipated needs ; 6. Overall impact of the SPP on Oklahoma 's oil and natural gas companies and the state economy; 7. Identification of areas requiring modificati on within the regulatory and statutory framework, prioritizing the best interests of Oklahoma ratepayers and taxpayers ; 8. The amount of power produced in Oklahoma by each entity subject to the jurisdiction of the Corporation Commission; ENGR. H. B. NO. 3053 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 9. The amount of power produced within Oklahoma which is transmitted outside of the state as well as the market value of said power; and 10. The cost, if any, that is built into rate cases before the Corporation Commission for the construction and maintenance of generation and transmission infrastructure which is used in whole or in part for the generation and transmission of power for sale outside of Oklahoma. C. 1. The Secretary shall ensure the completion o f the report no later than November 1, 2024. 2. A copy of the finalized report shall be submitted to the following entities: a. Governor of the State of Oklahoma, b. Speaker of the Oklahoma House of Representatives , c. President Pro Tempore of the Oklahoma State Senate, d. Chair of the Utilities Committee of the Oklahoma House of Representatives or successor committee , e. Chair of the Energy Committee of the Oklahoma State Senate or successor committee , and f. Chair of the Energy and Natural Res ources Committee of the Oklahoma House of Representatives or successo r committee. SECTION 4. It being immediately necessary for the preservation ENGR. H. B. NO. 3053 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval. Passed the House of Representatives the 27th day of February, 2024. Presiding Officer of the House of Representatives Passed the Senate the ____ day of __________, 2024. Presiding Officer of the Senate