Okla. Admin. Code § 165:35-34-1

Current through Vol. 42, No. 4, November 1, 2024

Section 165:35-34-1 - Purpose of this Subchapter

(a) This Subchapter establishes a fair, just, and reasonable process that best serves the public interest of all electricity consumers and that will complement and improve the state's economic growth by, among other things, making the most efficient use of Oklahoma's coal, natural gas, and power generation and transmission assets and furthers the policy of the Commission that a competitive procurement process is among the most effective means to achieve these objectives. To obtain a presumption of prudence, a utility shall employ the competitive bidding procedures set forth in this subchapter, when purchasing or self-building of new longterm electric generation, long term purchase power agreements, or long-term fuel supply for self-generation of electricity as set forth in this subchapter. The presumption of prudence shall not apply to a case filed pursuant to 17 O.S. § 286 (C). A utility may exercise managerial discretion and enter into contracts, fixed-priced or index-based, without seeking a presumption of prudence. However, if a utility does not employ the competitive bidding process set forth in this subchapter, there shall be no presumption of prudence and the determination of prudence will be decided during a subsequent Commission review. The competitive bidding process shall be open to Commission scrutiny, as are other regulated utility practices.

(b) It is the intent of the Commission to create an open, transparent, fair and nondiscriminatory competitive bidding process for the utility to meet its needs. It should not be construed that this Subchapter absolves or relieves any utility or competitive bidder from any duty prescribed by the laws of the State of Oklahoma or the United States including, but not limited to, the federal Public Utility Regulatory Policies Act (Public Law 95-617, as amended) and any other state or federal law regarding contractual rights and obligations, antitrust enforcement or liability, or laws against improper restraint of trade or "takings" of property.

(c) This Subchapter also establishes reasonable standards of conduct for transactions between utilities and their affiliates and standards for transactions between utilities and competitive bidders conducting business within the State of Oklahoma.

(d) This Subchapter shall not be applicable to a utility with no generation plant within the boundaries of Oklahoma and less than ten percent of its customers within the state.

(e) Wherever Independent Evaluator is referred to in this subchapter, it is understood that particular reference is only applicable if an Independent Evaluator has been retained by the Commission.

(f) The soliciting utility shall issue an all-source Request for Proposal and shall not exclude proposals for purchase power agreements. All-source refers to all reasonably available sources of electric generation for the contemplated project location(s).

Okla. Admin. Code § 165:35-34-1

Added at 23 Ok Reg 699, eff 2-17-06 (emergency); Added at 23 Ok Reg 1666, eff 7-1-06; Amended at 25 Ok Reg 1566, eff 7-1-08; Amended at 29 Ok Reg 1541, eff 7-12-12

Amended by Oklahoma Register, Volume 31, Issue 24, September 2, 2014, eff. 9/12/2014

Amended by Oklahoma Register, Volume 41, Issue 23, August 15, 2024, eff. 10/1/2024