On the somber anniversary of the winter storm Uri in February 2021, Oklahoma utility customers are closely watching the state Supreme Court as they now hold the power to decide the fate of more than $1.4 billion in bonds and $377 million in increased rates filed by OG&E and PSO. The situation has intensified with lawmakers, Reps. Tom Gann, Kevin West, and Rick West are submitting the final brief in their appeal against a 2025 Oklahoma Corporation Commission (OCC) order that authorized a $127 million rate increase for OG&E without a CPA-led audit of 2021's winter storm bonds. Their legal move has been bound together with a similar appeal challenging bonds and rate hikes for PSO, thus forcing the Court to simultaneously consider both appeals, according to Oklahoma House Media.
The representatives are not just asking to reverse the rate increases and orders for winter storm bonds. They are also demanding the court "We not only asked the justices to overturn the OCC’s rate increases and orders authorizing OG&E and PSO’s 2021 Winter Storm 'Uri' bonds. We have asked the court to require the OCC to follow state ethics rules and to follow state laws that require audits to be conducted by licensed CPAs," as Kevin West stated. These bold legal actions stem from allegations that the OCC permitted an underqualified employee to conduct audits of significant utility cases, particularly those involving OG&E and PSO, as reported by Oklahoma House Media. In total, Rep. Gann is to vigorously challenge an approximate $11 billion in utility charges approved under doubtful circumstances associated with OCC Commissioner Todd Hiett's alleged misconduct.
At the center of the controversy, Commissioner Hiett is accused of unethical behavior concerning utility companies represented by lawyers who, in 2023, hosted an event where Hiett is alleged to have sexually harassed two female OCC employees and driven home intoxicated. Even though a formal complaint against Hiett was dismissed by the Ethics Commission in May 2025, the appeal still questions his involvement in cases tied to parties affected by his alleged actions. "The OCC’s past violations of the law have far-reaching consequences, especially since they are ongoing, impacting current cases," Gann indicated, outlining how current cases are still impacted by these past infringements, as per details revealed by Oklahoma House Media.
Contrary to the legislators' stance, Attorney General Gentner Drummond argued that "Parties to legislative rate cases are not entitled to due process," essentially defending Hiett's participation, a perspective documented in a January brief. This sentiment is echoed by the defense, who maintain that OCC audits aren't required to follow the Oklahoma Accountancy Act. Rick West fears such a perspective, if upheld, could unleash financial disarray across state agencies. "Imagine the financial chaos that would break out across state government if the court says it’s okay for state agencies to make up their own definition of 'audit' and allow any staffer to do them, the way the OCC did," he expressed concern as quoted by Oklahoma House Media.
In the wake of winter storm Uri, Oklahoma utilities, including PSO and OG&E, faced exceptionally high natural gas prices, accruing considerable debt that, alongside interest and other expenses, has nearly tipped the scales at $5 billion. These costs have been passed on to customers through charges added to monthly bills since 2022. Lawmakers assert proper auditing never took place for these rate cases, a crucial step given the prolonged financial impact expected to last for two more decades. Their confidence in the appeals remains strong, as they believe both the law and the facts are squarely in their favor. "This matter is urgent," their brief implores the court, "Having already paid hundreds of millions of dollars of these illegitimate charges, these utilities’ captive customers have suffered enough," Gann, West, and West explained, detailing the urgency expressed in their brief cited by Oklahoma House Media.
