In a recent turn of events that has caught the attention of Oklahoma taxpayers, three state representatives have challenged orders by the Oklahoma Corporation Commission (OCC), which approved approximately $1.5 billion in fuel and purchased power costs. These Representatives, Tom Gann of Inola, Kevin West of Moore, and Rick West of Heavener, claim that an OCC employee lacking a college degree improperly performed utility company audits that directly affect customer charges. As detailed in a brief filed with the Oklahoma Supreme Court and according to a report by the Oklahoma House of Representatives, the audits in question were completed by a staffer who had reportedly left college in 2015, and since 2019 has been performing audits for the OCC's Public Utility Division (PUD).
The revelation comes at a time when fuel adjustment clause charges, which are reportedly passed directly onto customers' bills, are under scrutiny. "State law requires audits of the utilities' fuel charges every year," Gann explained, as per the information from the Oklahoma House of Representatives. The lawmakers assert that these requirements aim to ensure that such costs are fair and reasonable before being sanctioned by the OCC. However, the current process, whereby these audits and prudence reviews are carried out by internal OCC staff rather than external, independent auditors, is under question. The legislators' brief is expected to not only provide evidence of the employee's educational background but also highlight how the individual served as the OCC’s lead analyst in prominent fuel cases.
Serious allegations have also been directed towards OCC Commissioner Todd Hiett, who has faced accusations of improper conduct. The commission's critics include claims that Hiett has been involved in cases where attorneys who represented the utilities also hosted events he attended and was accused of sexual harassment. Additionally, concerns have been raised about Commissioner Hiett participating in OCC proceedings given his alleged actions. "State Ethics Rules and the Code of Judicial Conduct prohibit Hiett from participating in OCC cases involving victims/witnesses of his alleged criminal conduct," the representatives’ brief mentioned, as told by the Oklahoma House of Representatives.
The brief further challenges more than $10 billion worth of utility fuel charges since 2021, which have not undergone the proper audits and prudence reviews mandated by law. This includes high natural gas prices paid by OG&E, PSO, and ONG during a February 2021 cold snap, resulting in exorbitant fuel costs. Moreover, in a statement obtained by the Oklahoma House of Representatives, Representative Gann pointed out the insult this screening process poses to qualified public servants who are "legitimately earning their paychecks."
The involved parties are now awaiting a response from the Supreme Court as they strive to ensure the Corporation Commission abides by the standard procedures to protect ratepayers and uphold transparency. The Oklahoma House report indicates that staffing shortages within the OCC have been cited as a factor in these substantial challenges. Nonetheless, Representative Kevin West suggests that legislative intervention is pivotal: "In order to protect ratepayers and maintain public confidence and transparency, the Legislature will have to step in and ensure proper procedures are being followed." The ongoing legal battles are putting more than $11 billion in utility charges under the microscope, with potential implications for the state's energy sector and the pockets of its consumers, as per the Oklahoma House of Representatives.
