OG&E Proposed Large-Load Tariff Protects Oklahoma Households
Large-load users like data centers would cover all their costs
OG&E announced it filed a proposed large-load tariff with the Oklahoma Corporation Commission (OCC) to establish a transparent pricing and regulatory structure for large-load customers, including data centers, with robust customer protections.
The proposed tariff would protect existing OG&E customers from the costs of rising energy demand from large-load customers by establishing specific rates and terms and conditions. An independent review of the proposed tariff found OG&E’s customer protections to be among the most robust in the country.
At the same time, it represents the implementation of a new state law designed to protect ratepayers from high rates caused by data centers and large load projects, as OK Politics Today reported.
Large-load customers would pay the following charges as part of the tariff:
Customer Protections
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Shields existing customers from increased cost by requiring large-load customers to pay their fair share
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Creates a specific charge assigned to large-load customers so that residential customers don’t bear the cost should adverse impacts occur
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Customer protections require OCC review and approval to safeguard customers
Customer Affordability
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OG&E has proposed that large-load customers pay a monthly charge to reduce residential customer bills totaling $25-$30 million per year
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OG&E would request the OCC to approve funds to be credited to residential customers in each rate review, depending on what may be most beneficial to residential customers at the current time
Fair Share Connection Costs
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Large-load customers pay upfront for 100% of the costs to connect to the grid.
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Other customers will never see any rate impact for these transmission and distribution infrastructure costs.
Additional terms and conditions include billing minimums, early termination and capacity reduction fees and strong financial collateral requirements. OG&E has proposed a 15-year term with a maximum five-year ramp up period.
“We are committed to protecting our customers while supporting Oklahoma’s economic growth and keeping energy reliable with some of the lowest rates in the country,” said Sean Trauschke, chairman, president and CEO of OGE Energy Corp. “Our new large-load tariff proposal reflects a proactive approach to responsible planning with some of the nation’s strongest customer protections.”
Next, the OCC will establish the procedural schedule to review OG&E’s proposed large-load tariff. Stakeholders and customers will have an opportunity to engage in the process, which is expected to take approximately six months.
The proposed tariff would apply to new OG&E customers that expect to demand a minimum of 75MW of energy, existing customers that add 75MW of incremental energy demand or increase their demand and exceed 125 MW, or existing customers whose profile changes to meet the 75MW energy demand requirement.
OG&E is staying ahead of rising cost trends in other parts of the country and will continue to take proactive steps to protect our customers. OG&E’s rates remain among the lowest in the country, with Oklahoma residential rates today 21% below the regional average, and 33% below the national average. OG&E is dedicated to maintaining this competitive economic advantage while prioritizing affordability and reliability for all our customers.
