The future of more than $1 billion in bond payments and a series of rate increases that hit Oklahomans post-Winter Storm Uri is now riding on a legal showdown at the state's highest court. State Rep. Tom Gann, R-Inola, has filed a challenge before the Oklahoma Supreme Court against the Oklahoma Corporation Commission (OCC) and the Public Service Company of Oklahoma (PSO), as reported by the Oklahoma House of Representatives on their official website. Gann contends that necessary audits were not performed following the devastating storm in February 2021, calling the OCC's orders into question.
Details from the brief reveal that Gann is targeting $250 million in rate increases and the hefty bond payments, which are currently being siphoned from the wallets of PSO customers. In a twist that raises eyebrows, Gann has pointed out alleged due process violations, citing Corporation Commissioner Todd Hiett's involvement in cases with potential conflicts of interest—a matter stemming from Hiett's public accusations of sexual harassment and drunk driving related to a 2023 event thrown by PSO attorneys, Thompson Tillotson PLLC, according to the Oklahoma House of Representatives website.
While Gann advocates for Hiett's disqualification from such proceedings, the Attorney General Gentner Drummond, along with the OCC and PSO, have all filed briefs defending the commissioner's participation. In a pointed critique of the AG and OCC's stance, Gann was quoted, "To allow State Agencies to make up their own standardless definition of ‘audit’ is absurd," suggesting the potential for "financial chaos across state government if it is allowed to stand." This echoes his argument that the audits, which were supposed to be conducted by independent CPAs, were insufficient and against the law.
These financial storms brewed after Oklahoma utilities—PSO included—faced staggering gas prices during Winter Storm Uri, accumulating a debt of about $2.8 billion with interest and other fees inflating the total to nearly $5 billion, as Oklahomans began seeing "Winter Storm Cost Recovery Rider" charges on their monthly statements since September 2022. These additional fees are expected to persist for 17 years, raising concerns and questions about the transparency and legitimacy of the charges amongst the public. As detailed by the Oklahoma House, a proper audit of these charges, which was required by law, is at the heart of Gann's appeal.
The case has reached a critical juncture, with the Oklahoma Supreme Court holding the power to decide the future of these payments. If it chooses not to seek more briefs, the court's decision will serve as a landmark ruling on the legality of the OCC's actions. "Has full confidence in this court's ability to read and offer first-impression interpretations of the plain language of unambiguous laws, and to properly determine their applicability to the OCC," Gann penned with resolve about the awaiting verdict. Oklahomans now watch closely as their financial fate hangs in the balance, resting on the judgment of the state's highest judicial authority.
