SECTION 165:35-37-1. Purpose of this Subchapter

(a)   The purpose of this Subchapter is to establish fair, just, and reasonable rules and procedures for Commission review of the resource plans of utilities. The utility resource plans establish additional bases for substantial investment and expenses incurred by utilities to provide electric supply to retail consumers. The practices and polices embodied in a utility's resource plan have direct, substantial effects on the costs and reliability of the electric supply to be provided to retail consumers in Oklahoma. Resource planning is a complex process affecting decisions that account for a substantial portion of the total cost of electricity over the long term, including investments in generation and transmission facilities, purchases of power and fuel supply, price volatility mitigation, and investments in energy efficiency. Recognizing the significance of the costs incurred based on resource plans, the Commission believes it is in the best interest of retail ratepayers and the utilities providing regulated retail electric supply to establish regular review of the utilities resource plans to ensure that the utilities' resource planning and resulting investment are reasonably and prudently conducted and that the overall cost of power supply to retail ratepayers is fair, just, and reasonable.

(b)   This Subchapter establishes fair, just, and reasonable procedures for:

(1)   Setting standards for prudent resource planning;

(2)   Conducting periodic reviews of utility resource plans;

(3)   Participation of stakeholders, particularly those representing ratepayer interests, to review and have input into the utility's resource plans and the Commission's resource planning policies;

(4)   Establishing the need for additional resources serving as the basis for long-term competitive procurement of resources, including, but not limited to, utility construction of new electric generation facilities, the utility purchase of existing electric generation facilities, and the purchase of long-term power supplies;

(5)   Establishing objectives and action plans consistent with Commission resource planning policies;

(6)   Establishing a clear standard of prudent financial management including but not limited to a utility's demonstration of consideration of physical and financial hedging, cost effectiveness, and other tools of prudent financial management;

(7)   Establishing appropriate plans for capital expenditures for equipment or facilities at utility generation facilities necessary to comply with the Federal Clean Air Act, as amended, and other federal, state, local, or tribal environmental requirements;

(8)   Establishing a clear, before-the-fact foundation for the recovery of prudently incurred investment and expenses in subsequent rate and fuel and purchased-power cost recovery proceedings; and

(9)   Establishing the appropriate portfolio of products to be obtained through competitive procurement.

[Source: Added at 23 Ok Reg 699, eff 2-17-06 (emergency); Added at 23 Ok Reg 1666, eff 7-1-06; Amended at 29 Ok Reg 1541, eff 7-12-12]