Oklahoma 2025 2025 Regular Session

Oklahoma House Bill HB1737 Comm Sub / Bill

Filed 03/05/2025

                     
 
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STATE OF OKLAHOMA 
 
1st Session of the 60th Legislature (2025) 
 
COMMITTEE SUBSTITUTE 
FOR 
HOUSE BILL NO. 1737 	By: Moore 
 
 
 
COMMITTEE SUBSTITUTE 
 
[ Natural Gas Utility Infrastructure Cost Recovery 
Act of 2025 - cost recovery rules - cost assessment 
request - promulgation of certain rules – 
codification - effective date ] 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 810 of Title 17, un less there is 
created a duplication in numbering, reads as follows: 
This act shall be known and may be cited as the "Natural Gas 
Utility Infrastructure Cost Recovery Act of 2025 ". 
SECTION 2.     NEW LAW     A new section of law to be codifi ed 
in the Oklahoma Statutes as Section 811 of Title 17, unless there is 
created a duplication in numbering, reads as follows: 
A.  As used in this section : 
1.  "Energy Infrastructure Facility " refers to any physical 
asset or system involved in the productio n, processing, storage,   
 
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transportation, distribution, or delivery of energy by a natural gas 
utility, including renewable natural gas (RNG), hydrogen, other 
alternative fuels, and emerging technologies such as carbon capture 
and sequestration; and 
2.  "Public interest" is defined as including, but not limited 
to, projects that enhance energy reliability and energy security, 
promote economic development and job creation, increase systemwide 
capacity, accelerate the commercialization of advanced emerging 
technologies, or provide environmental benefits. 
B.  A natural gas utility subject to rate regulation by the 
Corporation Commission may elect to file an application seeking pre -
approval by the Commission to construct or invest in an energy 
infrastructure facil ity, to purchase an energy infrastructure 
facility, to construct or invest in an interconnect for the purposes 
of connecting its system to an energy infrastructure facility, or 
enter into a contract for purchased gas supply or engage in fuel 
generation, including renewable natural gas (RNG), hydrogen, or 
other alternative fuels as well as transportation capacity, fuel 
storage, or other infrastructure and technologies that support 
system innovation, subject to the provisions of this section. If, 
and to the extent that, the Commission determines that the future 
construction or purchase of the energy infrastructure facility or 
gas supply contract serves the public interest, the facility or 
contract shall be considered used and useful and its costs shall be   
 
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subject to cost recovery rules promulgated by the Commission.  Any 
costs that exceed the amount approved by the Commission by more than 
ten percent (10%), shall be subject to prudency review as part of 
the utility's next general rate filing. The Commission shall enter 
an order on an application filed pursuant to this subsection within 
two hundred forty (240) days of the filing of the application, 
following notice and hearing. 
C.  Following receipt of an application filed pursuant to this 
section, the Corporat ion Commission staff may file a request to 
assess the specific costs, to be paid by the natural gas utility and 
which shall be deemed to be recoverable, for the costs associated 
with conducting the analysis or investigation of the application 
including, but not limited to, the cost of acquiring expert 
witnesses, consultants, and analytical services. The request shall 
be filed at and heard by the Corporation Commissioners in the docket 
opened by the natural gas utility pursuant to this section. After 
notice and hearing, the Commission shall decide the request. 
D.  Additionally, following receipt of an application filed 
pursuant to this section, the Office of the Attorney General may 
file a request with the Corporation Commission for the assessment of 
specific costs, to be paid by the natural gas utility and which 
shall be deemed to be recoverable, associated with the performance 
of the Attorney General 's duties as provided by law. Those costs 
may include, but are not limited to, the cost of acquiring expert   
 
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witnesses, consultants and analytical services. The request shall 
be filed at and heard by the Corporation Commissioners in the docket 
opened by the natural gas utility pursuant to this section. After 
notice and hearing, the Commission shall decide the request. 
E.  The Commission shall promulgate rules to implement the 
provisions of this section. The rules shall be transmitted to the 
Legislature on or before April 1, 2026. In promulgating rules to 
implement the provisions of this section, the Commissio n shall 
consider, among other things, rules which would: 
1.  Permit contemporaneous utility recovery from its customers, 
the amount necessary to cover the Corporation Commission staff and 
Attorney General assessments as authorized by this section ; 
2.  Establish how the cost of facilities approved pursuant to 
this section shall be timely reviewed, approved, and recovered or 
disapproved; and 
3.  Establish the information which a natural gas utility shall 
provide when filing an application pursuant to this sec tion. 
F.  The Commission shall also consider rules which may permit a 
natural gas utility to begin to recover return on or return of 
Construction-Work-In-Progress expenses prior to commercial operation 
of a newly constructed energy infrastructure facility. 
SECTION 3.  This act shall become effective November 1, 2025. 
 
60-1-13197 GRS 03/05/25   
 
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