State government; extreme purchase; extraordinary costs; audit; definitions; effective date.

HB 1350 allows Oklahoma utilities to recover certain high "extreme purchase" or "extraordinary costs" (like emergency repairs or unusual expenses) by issuing ratepayer-backed bonds instead of raising customer rates immediately. Utilities must provide detailed cost estimates, demonstrate potential customer savings from this bond method versus traditional financing, and undergo a required audit before costs are approved. The bill also mandates that insurance or grant funds covering these costs must reduce customer bills, and specifies how carrying charges apply to such funds. This directly affects regulated utilities (like water, gas, or electric providers) and their customers by changing how certain costs are recovered.