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 Oklahoma Administrative Code (Last Updated: March 11, 2021)
 TITLE 165. Corporation Commission
 Chapter 40. Standard Terms of Purchases from Purchasers of 300 KW or Less
 Subchapter 11. Method of Calculating Purchase Rates for the Standard Rate Schedule

  SECTION 165:40-11-2. Firm power purchase rates  

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  •   Annual firm power purchase rates will be calculated by the following method:
    (1)   The purchase rate (PR) will be equal to the sum of the capacity component (CC), the energy component (EC), and the fuel adjustment component (FA); thus, the equation being PR = CC + EC + FA.
    (2)   The initial capacity component (CC) will be equal to the average annual cost of the next unit of capacity or the next unit of capacity of the wholesale power supplier per kWh (CAP/KWH); thus, the equation being CC = CAP/KWH. The next unit of capacity may be equal to the average annual cost of a purchased power contract.
    (3)   In turn, the average annual cost of the next unit (CAP/KWH) is equal to the product of the initial total capital investment per KW (CI/KW) times annual carrying, fixed operation, and fixed maintenance and administrative expense per dollar of investment (ACI/CI) divided by the product of the hours in the year times the capacity utilization ratio. The initial capacity utilization ratio will be .60., resulting in (CI/KW × ACI/CI)/(8760 × .60).
    (4)   The energy component (EC) shall equal the current average cost per kWh of fuel embedded in the base retail rates or the fuel imbedded in the base wholesale rates of the wholesale power supplier(s) (ER), and shall be changed if the base rate amounts change; plus, an amount equal to average variable generation operations and maintenance expense (OM) per kWh; plus, the savings in line loss. The savings will be calculated as five percent (5%) of energy charges, resulting in equation of EC = ER + .05ER + OM.
    (5)   The fuel adjustment component (FA) for each month shall be the current month's retail fuel adjustment for investor owned utilities or the current month's fuel adjustment of the wholesale power supplier(s) for distribution cooperatives.
    (6)   Firm power means energy delivered to the cooperative/utility with at least a sixty-five percent (65%) on-peak season capacity factor. The on-peak season is those hours specified as peak period in the cooperative/utility's retail tariffs or in the tariff of the wholesale power supplier. If not specified in either the retail or wholesale supplier tariffs, the on-peak season shall be 4:00 p.m. to 8:00 p.m., June through September.