HB 1102 Oklahoma House · 2026 Regular Session

Corporation Commission; creating the Corporation Commission Modernization Act of 2025; effective date.

HB 1102 creates a process for Oklahoma's Corporation Commission to allow regulated utilities (like gas and electric companies) to use ratepayer-backed bonds instead of traditional financing to recover "extreme purchase costs" or "extraordinary costs" (such as unexpected fuel expenses). The bill requires utilities to provide detailed cost estimates, demonstrate customer savings from bond financing versus traditional methods, and undergo a mandatory audit of costs before approval. The Commission must evaluate whether bond financing reduces customer bills through lower interest rates or longer repayment periods, and utilities must offset recovered costs if insurance or grants cover part of the expenses. This change takes effect November 1, 2025, modifying how utilities recover certain costs from customers.

Bill status died 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 3, 2025 Last action Feb 6, 2025

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What changed between versions

Introduced → Proposed Policy Committee Substitute 1 · 7 edits

MODERATE

This bill was amended by the Policy Committee to replace the original Corporation Commission Modernization Act with a new focus on extreme purchase and extraordinary costs for regulated utilities. The amendment adds detailed procedures for securitization of costs through ratepayer-backed bonds, audit requirements, and financial advisor engagement to reduce customer bill impacts.

Scope change

The bill's scope shifted from general Corporation Commission modernization to specifically addressing extreme purchase and extraordinary costs through securitization mechanisms and audit requirements.

SCOPE

Removed the original bill title 'Corporation Commission Modernization Act of 2025' and replaced it with a focus on state government and utility cost recovery.

REQUIREMENT

Added new requirements for utilities to provide cost estimates, demonstrate bill impacts of securitization, and facilitate audits before recovering costs through ratepayer-backed bonds.

Modified audit requirements to comply with Section 15.1a of Title 59 of Oklahoma Statutes, including specific attestation requirements.

FISCAL

Added provisions allowing the Commission to engage financial advisors with expenses recoverable through ratepayer-backed bonds, exempt from standard purchasing act requirements.

ELIGIBILITY

Added criteria for determining when extreme purchase costs should be mitigated through bonds, including revenue savings, customer bill impact, and cost efficiency.

DEFINITION

Added definitions and procedures for carrying costs that begin accruing at a time determined by the Commission in financing orders.

TIMELINE

Maintained the effective date of November 1, 2025, but changed the bill type from introduced to proposed policy committee substitute.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 6, 2025

Committee

Referred to Utilities

lower

Feb 6, 2025

Committee

Referred to Energy and Natural Resources Oversight

lower

Feb 3, 2025

Introduced

First Reading

lower

1 primary · 0 co-sponsors