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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 1003 By: Stewart
AS INTRODUCED
An Act relating to the Corporation Commission;
defining terms; requiring the Commission to
promulgate rules; establishing provisions for the
consideration of electric grid qualifications;
prohibiting approval of certain actions by the
Commission; providing for certain considerations for
the retiring of certain electric generation
mechanisms; directing coordination with regional
transmission organizations; providing for
codification; and providing an 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 295 of Title 17, unless there is
created a duplication in numbering, reads as follows:
A. As used in this section:
1. “Firming power” means power sources that can provide at
least forty-eight (48) hours of back -up power to intermittent
generation at the expected maximum level of power provided by the
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intermittent generation , predicted using an industry -standard
methodology;
2. “Guaranteed power capacity ” means the sum of the on -demand
power and firming power available, calculated without double -
counting any power source;
3. “Intermittent generation ” means electric generation that
requires intermittent sources of energy such as sunlight or wind;
4. “On-demand power” means electric power from sources that do
not depend on intermittent sources of e nergy such as sunlight or
wind and whose output can be provided within eight (8) hours and
controlled to meet changes in demand. Provided, on-demand power
does not include electric power from batteries or other storage
mechanisms that are charged in whole or in part by intermittent
generation; and
5. “Peak net load” means the estimated peak demand minus the
estimated minimum level of power provided by intermittent generation
at the time of peak demand, predicted using an industry -standard
methodology.
B. The Corporation Commission shall promulgate rules and
procedures to ensure tha t any electric grid serving ratepayers in
this state is affordable and reliable as set forth in this act.
C. An electric grid shall not be considered affordable and
reliable unless:
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1. Any new power generation resource is chosen and approved
based solely on achieving the lowest total monetary cost among
available options. The lowest total monetary cost shall be
calculated by adding the total monetary cost of construction and
operation of such resource that will be charged to ratepayers, the
fiscal costs to any level of government of direct and indirect
monetary subsidies applicable to such resource, the monetary cost of
providing firming power if required by this act or otherwise, and
other system costs necessary to integrate the resource;
2. Existing power generation resources are not retired prior to
the end of their potential useful lives, including where such useful
lives can be extended through repairs or other modificatio ns, unless
retirement results in a lower total monetary cost among available
options and the requirements of subsection E of this section are
met;
3. The grid maintains a guaranteed power capacity of at least
one hundred fifteen percent (115%) of peak net load;
4. Power generation resources serving the grid meet continuous
operating requirements for summer and winter peaks, including
extreme weather events that necessitate on -site fuel storage, dual
fuel capability, or fuel supply arrangements to ensure p erformance
for seven (7) days in the event of extreme weather; and
5. System-wide loss of load events, such as power shortages or
brownouts, are not expected to occur, to an industry -standard level
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of certainty, more than once in ten (10) years, and for a duration
of five (5) hours or fewer.
D. The Corporation Commission shall not take any action
approving a new intermittent generation source unless the source has
the support of firming power up to the expected maximum output level
of the source for forty -eight (48) hours during periods of peak load
on the grid, and the cost of cons tructing or contracting for that
firming power shall be included in calculating the total monetary
cost of the intermittent generation source.
E. Guaranteed power capacity shal l be a primary consideration
of the Corporation Commission when considering matters related to
the retiring or adding of electric generation. The Commission shall
not approve retiring any electric generation source that provides
on-demand power, including by approving a certificate of convenience
or a permit to build or acquire inte rmittent generation, unless the
utility establishes by a preponderance of the evidence that the
applicable electric grid will have , at the time of retirement , a
guaranteed power capacity equal to or greater than described in
paragraph 3 of subsection C of this section.
F. The Corporation Commission shall coordinate with regional
transmission organizations to develop policies which provide power
for the region in a cost -effective manner that is not weather -
dependent, can be controlled to meet changes in dem and, and meets
the requirements prescribed by this section.
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SECTION 2. This act shall become effective November 1, 2025.
60-1-59 RD 1/16/2025 2:19:54 PM