Justia Securities Law Opinion SummariesArticles Posted in Oklahoma Supreme Court
In re: Application of OK Dev. Finance Auth.
In February 2021, the State of Oklahoma endured record cold temperatures. The severe cold weather resulted in a shortage of the natural gas supply and in turn extraordinary natural gas costs for regulated utilities operating in Oklahoma. The cost of natural gas for the Oklahoma utilities during the two weeks of extreme cold exceeded their entire fuel acquisition cost in 2020. As a result, the Oklahoma Legislature enacted the February 2021 Regulated Utility Consumer Protection Act, 74 O.S.2021, ch. 110A-1, sections 9070-9081, to provide financing options to lower the economic impact on the utility customers. Most Oklahomans could not afford a one-time, cost recovery payment imposed by the utility, and the Legislature provided a new mechanism to spread the fuel cost recovery over a longer period to minimize the financial impact on utility customers. The Act authorized the Oklahoma Corporation Commission (Commission) to approve the recovery of costs through securitization. The Oklahoma Development Finance Authority requested that the Oklahoma Supreme Court assume original jurisdiction and approve the issuance of ratepayer-backed bonds pursuant to the Act. The Supreme Court assumed original jurisdiction and held the ratepayer-backed bonds were properly authorized under the Act and were constitutional. View "In re: Application of OK Dev. Finance Auth." on Justia Law