Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 35 - Electric Utility Rules › Subchapter 37 - Integrated Resource Planning › Section 165:35-37-1 - Purpose of this Subchapter

Current through Vol. 41, No. 20, July 1, 2024
(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.