OKLAHOMA CITY – A bill seeking to protect utility customers from paying higher rates because of 2021’s Winter Storm Uri unanimously passed in the Oklahoma House of Representatives on Tuesday.
Rep. Kevin West, R-Moore, authored House Bill 1220, which would prohibit municipalities that have franchise agreements with utility companies from assessing those fees and taxes on the securitization amount customers are paying due to the storm.
West reported that in November 2024, Oklahoma City and the Municipal League sued for the right to assess franchise fees on the amount that customers are paying for securitization.
“This would be yet another cost that would be passed on to the rate payers,” West said. “Having been in the Legislature when securitization was passed, it is my opinion that legislators did not intend for this occur. I have seen no evidence that anything about securitization caused any additional costs to the municipalities to warrant these additional fees and/or taxes.”
HB1220 includes the same language for both “regulated” and “unregulated” utilities. West said this was done to have continuity in both statutes and to cover rate payers in the event that an unregulated utility is participating in securitization and has a franchise agreement in place.
It has been estimated the franchise fees would amount to $60 million to $100 million dollars over the life of the securitization bonds. West said, again, these fees would come from the rate payers.
“Oklahoma utility customers are already paying long-term bond rates associated with this storm,” West said. “This bill would protect them from having franchise fees and municipal sales taxes stacked onto their bills. This measure had great support, and I’m hopeful it will proceed quickly through the Senate and be signed into law.”
The bill passed the House with an emergency clause meaning it would take effect after final passage and approval by the governor.
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Kevin West serves District 54 in the Oklahoma House of Representatives. His district includes parts of Cleveland and Oklahoma counties.
