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ENGROSSED HOUSE
BILL NO. 4097 By: Caldwell (Trey) of the
House
and
Paxton of the Senate
An Act relating to public utilities; amending 17 O.S.
2021, Section 291, which relates to definitions;
modifying definition; amending 17 O.S. 2021, Section
292, which relates to rights of elec tric transmission
owners; adding description of certain electric
transmission facility; authorizing certain rights to
incumbent electric transmission owners for certain
facilities; requiring solicitation of competitive
bids for construction of certain faci lities;
requiring certain request for proposal and bi d
evaluation to be overse en by appointed independent
evaluator; authorizing incumbent electric
transmission owner to submit certain bid; amending 17
O.S. 2021, Section 293, which relates to local
electric transmission facility ; requiring certain
notice of intent; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 17 O.S. 2021, Section 291, is
amended to read as follows:
Section 291. As used in this act:
1. "Commission" means the Corporation Commission;
2. "Incumbent electric transmission owner " means any Oklahoma
electric public utility, as recognized by the Commis sion, or its
affiliates, or subsidiaries or a ny electric cooperative, any
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municipal power agency or any municipal utility t hat owns, operates
and maintains an electric transmission fac ility in this state or any
public utility, as recognized by the Commissi on, that is engaged in
the development of an electric transmission facility in the state as
of the effective date of this a ct;
3. "Local electric transmission facility" means a high-voltage
transmission line or high-voltage associated transmission facilit ies
with a rating of greater than sixty -nine (69) kilovolts and less
than three hundred (300) kilovolts ; and
4. "Southwest Power Pool" means the Southwest Power Pool or any
federally recognized successor entity.
SECTION 2. AMENDATORY 17 O.S. 2021, Section 292, is
amended to read as follows:
Section 292. A. An For any local electric transmission
facility with a rating greater than six ty-nine (69) kilovolts an d
less than three hundred (300) kilovolts, an incumbent electric
transmission owner has the right to construct, own a nd maintain a
local electric transmission any such facility that has been appr oved
for construction in a S outhwest Power Pool transmissio n plan and
will interconnect to facilities owned by that incumbent electri c
transmission owner. An incumbent electric transmission owner has
the right to construct, own and maintain:
1. A new local electric transmission facility th at connects to
electric transmission facilities owned by the incumbent; and
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2. Upgrades to the e xisting local electric transmission
facilities of the incumbent.
B. For any local electric transmi ssion facility with a ra ting
greater than three hundred (300) kilovolts with a need date w ithin
three (3) years, as determined by the Southwest Power Pool, a n
incumbent electric transmission owner has the ri ght to construct,
own, and maintain any such facility that has been approved for
construction in a Southwest Power Pool transmission plan a nd will
interconnect to facilities owned by that incumbent electric
transmission owner. An incumbent electric transm ission owner has
the right to construct, own , and maintain:
1. A new local electric transmission fac ility that connects to
electric transmission facilities owned by the incumbent; and
2. Upgrades to the existing local electric transmission
facilities of the incumbent.
C. For any local electric transmission facility with a rating
greater than three hundred (300) kilovolt s with a need date greate r
than three (3) years, as determined by the Southwest Power P ool, an
incumbent electric transmission owner has the r ight to own and
maintain any such facility that has been approved fo r construction
in a Southwest Power Pool transmission plan and will int erconnect to
facilities owned by that incumbent electric trans mission owner, if
the incumbent electric transmission o wner issues a request for
proposal which solicits competitive bids for constru ction of the
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facility. The request for proposal and associat ed bid evaluation
and selection shall be overseen by an independent evaluator
appointed by the Oklahoma Corporation C ommission. Nothing herein
shall prohibit an incumbent electric transmission o wner from
submitting its own bid to construct such a facility . An incumbent
electric transmission owner has the right to o wn and maintain:
1. A new local electric transmission facility that connects to
electric transmission facilities owned by the incumb ent; and
2. Upgrades to the existin g local electric transmis sion
facilities of the incumbent.
D. The right to construct, own and maintain a local electric
transmission facility that will interconnect to facilities owned by
two or more incumbent electric transmission owners belongs
individually and equally to each incumbent electric transmission
owner, unless otherwise agreed upon in writing by the incumbent
electric transmission owners.
C. E. Nothing in this section is intended to affect an
incumbent electric transmission owner’s use and c ontrol of its
existing property rights including the incumbent electric
transmission owner’s ability to assign its rights to construct, own
and maintain a local elect ric transmission facility described in
subsection A of this section. The retention, modification or
transfer of existing property rights of an incumbent electric
transmission owner and the rights described in subsection A of this
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section shall remain subj ect to the relevant state law or regulation
recognizing the property right.
F. An electric cooperative which is not a mem ber of the
Southwest Power Pool may construct, own, and maintain local electric
transmission facilities without regard to the provisions of this
section.
SECTION 3. AMENDATORY 17 O.S. 2021, Section 293, is
amended to read as follows:
Section 293. A. If the Southwest Power Pool has approved a
local electric transmission facility in a Southwest Power Pool
transmission plan and has formally direc ted the incumbent electri c
transmission owner or owners, if there is more than one owner, to
construct, own and maintain the local electric tr ansmission
facility, the incumbent electric transmission owner or owners shall
give notice to the So uthwest Power Pool, in writing, within ninety
(90) days of receipt of the direction to construct by the Southwest
Power Pool, regarding its intent to constr uct, own and maintain the
local electric transmission facility pursuant to subsection A or B
of Section 292 of this title or its intent to own and maintain the
local electric transmission facility pursuant to subsection C of
Section 292 of this title. If notice is not provided, the incumbent
electric transmission owner shall surren der its right to const ruct,
own and maintain the local electr ic transmission facility.
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B. If an incumbent electric transmission owner or owners give
notice of intent not to cons truct the local electric transmission
facility or fail to provide notice as re quired in subsection A of
this section, then the Southwest Po wer Pool may determine whether
the incumbent electric transmission owner or owners or other entity
will construct, own and maintain the local electric transmission
facility.
C. Nothing in this s ection is intended to limit the ability of
any person to notify the Southwest Power Pool that it believes an
incumbent electric transmission owner with the right to construct,
own and maintain a local electric transmission facility originally
approved by the Southwest Power Pool h as failed to exercise its
right to construct, own and maintain the local electric transmission
facility within a reasonable period of time and request th at the
Southwest Power Pool rescind the right to construct, own and
maintain the local electric transmission facility and assign the
rights to another incumbent electric transmission owner.
SECTION 4. This act shall become effective November 1, 2024.
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Passed the House of Representatives the 29th day of February,
2024.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2024.
Presiding Officer of the Senate