House Bill 1220, aimed at protecting utility ratepayers, was not included on the Oklahoma State Senate's agenda before the deadline, potentially leaving residents facing higher costs, as per a report by the Oklahoma House.
Authored by Rep. Kevin West, R-Moore, HB1220 gained unanimous support in the House this March before navigating and passing the Senate Energy Committee. However, it sits idly on general order, where it has yet to be given its moment for debate on the Senate floor. The bill aims to shield consumers from paying increased utility rates sparked by Winter Storm Uri’s aftermath—particularly by barring municipalities with existing franchise agreements with utility companies from levying additional franchise fees and taxes on the securitization payments customers make due to the storm, according to the Oklahoma House of Representatives' news release.
"With the passage of securitization, the Legislature inadvertently left it open for ratepayers to shoulder the additional costs of the franchise fees and taxes on top of the bond amount," West said in a statement, emphasizing the impending financial burden that could persist for the next 25 years, costing Oklahomans potentially millions of dollars more, as reported by the Oklahoma House.
Delving into recent legal disputes, West highlighted a lawsuit filed in November 2024 by Oklahoma City and the Municipal League aiming to impose franchise fees on the securitization amounts paid by customers—a move West denounced. He reiterated his stance that securitization did not incur extra costs to cities that would justify these added charges. Instead, he suggested it appears as an attempt by these governing entities to sidestep contributing their share from existing funds, pushing that responsibility onto the citizens, as noted by the Oklahoma House.
Under HB1220's provisions, both regulated and unregulated utilities holding franchise agreements would be encompassed by this protective language—a consistency measure West deems necessary to safeguard all ratepayers involved in securitization. Estimated franchise fees could potentially range from $60 million to $100 million over the bonds' life. These fees, once again, would come directly out of the pockets of ratepayers. West elaborated on the impact of the Senate's inaction, expressing frustration over the lack of consideration by Senate leadership despite the widespread support previously seen in the House.
