Why is the Oklahoma Legislature Raising My Electricity Rates?
Oklahomans’ electricity rates will increase if the legislature passes House Bill 4097, which drives costs higher for expensive construction of transmission lines, passing those increases on to customers.
Oklahoma’s incumbent utilities want to gain control of these construction contracts without going through a fair bidding process, strengthening their grip over electricity in the state and ability to increase their profits.
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Despite alarming spikes in electric bills, a measure being considered by the Oklahoma Legislature – House Bill 4097 – would increase costs for Oklahoma families and businesses by eliminating the benefits of free market competition.
– Oklahoma Americans for Prosperity
And Oklahoma’s Utilities Are Already Asking for You to Pay More
Oklahoma Gas and Electric (OGE) has requested a $332 million rate increase that would result in an almost 14% increase in rates for consumers
A similar request has been submitted by PSO for a $218 million rate hike.
House Bill 4097 Kills Competition and Adds Even More to Electricity Costs
Under House Bill 4097, by state Rep. Trey Caldwell, there would be no competitive bidding for transmission projects with a rating greater than 300 kilovolts that would be completed within three years.
The proposal is like “Right of First Refusal” (ROFR) which eliminates competition from multi-million contracts for building new high-powered transmission lines.
Competition in power line construction saves consumers 20-30% on their electric bills.
Minnesota enacted a ROFR bill, and construction costs of new power line construction there doubled to $1.14 billion.
The Trump Administration Department of Justice took a strong stance against ROFR, writing:
“Competition is a core organizing principle of the American economy, and vigorous competition among sellers in an open marketplace gives consumers the benefits of lower prices, higher quality goods and services, increased access to goods and services, and greater innovation.”
Oklahoma Voters Support Competition
Oklahoma voters support competition for power line construction because it leads to lower costs for everyone. Consumers suffer when legislators give special rights to favored utilities.
Anti-competitive proposals favoring utility companies fly in the face of the principles that made America great, like competition, free markets and freedom.