Bill Number: OK51RSB 717 Filed: 01-19-2007
Author: Adelson
STATE OF OKLAHOMA
1 1st Session of the 51st Legislature (2007)
2 SENATE BILL 717 By: Adelson
3 AS INTRODUCED
4 An Act relating to public utilities; amending 17 O.S.
5 2001, Section 191.5, as amended by Section 4, Chapter
6 196, O.S.L. 2004 (17 O.S. Supp. 2006, Section 191.5),
7 which relates to acquisition of certain public
8 utilities; removing requirement for certain
9 Commission consideration; and declaring an emergency.
10 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
11 SECTION 1. AMENDATORY 17 O.S. 2001, Section 191.5, as
12 amended by Section 4, Chapter 196, O.S.L. 2004 (17 O.S. Supp. 2006,
13 Section 191.5), is amended to read as follows:
14 Section 191.5 A. The Corporation Commission shall approve
15 any merger or other acquisition of control referred to in Section
16 191.2 of this title upon such terms and conditions as it deems
17 necessary or appropriate in the public interest unless, after a
18 public hearing thereon, it finds that one or more of the following
19 conditions exist or will exist if such merger or other acquisition
20 of control is consummated, in which event it shall disapprove such
21 merger or acquisition of control and the same shall not be
22 consummated:
23 1. The acquisition of control would adversely affect the
24 contractual obligations of the domestic public utility or of any
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1 person controlling such domestic public utility, or its ability or
2 commitment to continue to render the same level of service to its
3 customers that the domestic public utility is currently rendering;
4 2. The effect of the merger or other acquisition of control
5 would be substantially to lessen competition in the furnishing of
6 public utility service in this state;
7 3. The financial condition of any acquiring party is such as
8 might jeopardize the financial stability of the domestic public
9 utility or any person controlling such domestic public utility or
10 otherwise prejudice the interest of the domestic public utility's
11 customers;
12 4. The plans or proposals which an acquiring party has to
13 liquidate the public utility or any such controlling person, sell
14 its assets, or a substantial part thereof, or consolidate or merge
15 it with any person, or to make any other material change in its
16 investment policy, business or corporate structure or management,
17 would be detrimental to the customers of the domestic public utility
18 and not in the public interest;
19 5. The competence, experience and integrity of those persons
20 who would control the operation of the domestic public utility are
21 such that it would not be in the interest of its customers and the
22 public to permit the merger or other acquisition of control;
23 6. After giving effect to the merger or other acquisition of
24 control of a domestic public utility whose utility service includes
25 the furnishing of electric current, such domestic public utility
26 would not be operated, in the judgment of the Commission, on an
27 integrated basis with the domestic public utilities and foreign
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1 public utilities affiliated with the acquiring party and, if the
2 acquiring party is a domestic public utility or foreign public
3 utility, with the acquiring party; or
4 7. Prior to giving effect to the merger or other acquisition
5 of control of a domestic public utility whose utility service
6 includes the furnishing of electric current, the acquiring party is
7 not substantially engaged in the business of providing utility
8 service. Provided that, in the discretion of the Commission, the
9 condition shall not apply to an acquiring party that on the
10 effective date of this act, directly or indirectly, through one or
11 more of its affiliates:
12 a. owns more than fifty percent (50%) of an electric
13 generating facility in this state, and
14 b. is selling power from such facility to the domestic
15 public utility pursuant to a contract approved by the Commission.
16 Further provided that this exception to this condition shall
17 apply only to an acquiring party that on the effective date of this
18 act, directly or indirectly through one or more of its affiliates,
19 meets the requirements of subparagraphs a and b of this paragraph
20 and shall not apply to any third party that after the effective date
21 of this act acquires directly or indirectly such acquiring party or
22 all or part of the generating facility described in subparagraphs a
23 and b of this paragraph.
24 B. The public hearing referred to in subsection A of this
25 section shall be commenced within sixty (60) days after the
26 statement required by Section 191.2 of this title is filed. The
27 place, date and time for such public hearing shall be set by the
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1 Commission and notice thereof shall be given by the Commission to
2 the person filing the statement and to the domestic public utility
3 at least twenty (20) days prior to the date of the public hearing.
4 Notice of the public hearing shall be given by the person filing the
5 statement to such other persons and in such manner as may be
6 directed by the Commission at least fifteen (15) days prior to such
7 public hearing. The domestic public utility shall give notice to
8 its customers as provided in Section 191.6 of this title. The
9 public hearing referred to in subsection A of this section shall be
10 concluded within sixty (60) days after the commencement of such
11 hearing unless it is necessary, for good cause shown or in the
12 judgment of the Commission, to continue such hearing for sixty (60)
13 days. The Commission shall make a determination on the factors
14 specified in subsection A of this section within sixty (60) days
15 after the conclusion of such hearing, and any merger or other
16 acquisition of control within the purview of this section shall be
17 deemed approved as filed unless the Commission has, within sixty
18 (60) days after the conclusion of such hearing, entered its order
19 approving the merger or other acquisition upon such terms and
20 conditions as it deems necessary or appropriate in the public
21 interest or disapproving the merger or other acquisition of control.
22 C. [In determining whether a domestic public utility whose
23 utility service includes furnishing electric current would be
24 operated on an integrated basis under paragraph 6 of subsection A of
25 this section, the Commission shall consider such factors as physical
26 interconnection to the acquiring party or its affiliates and the
27 ability to be economically operated with the acquiring party and its
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1 affiliates as a single coordinated system not so large as to impair
2 the advantages of localized management, efficient operation and the
3 effectiveness of regulation.]
4 [D.] In determining whether an acquiring party is or is not
5 substantially engaged in providing utility service under paragraph 7
6 of subsection A of this section, an acquiring party shall be deemed
7 to not be substantially engaged in the business of providing utility
8 service if, based on the information included in the schedule filed
9 pursuant to paragraph 10 of subsection A of Section 191.3 of this
10 title, the amount of the total nonutility assets of the acquiring
11 party exceeds the amount of the total utility assets of the
12 acquiring party.
13 SECTION 2. It being immediately necessary for the
14 preservation of the public peace, health and safety, an emergency is
15 hereby declared to exist, by reason whereof this act shall take
16 effect and be in full force from and after its passage and approval.
17 51-1-1642 MJM 1/19/2007 4:59:29 AM
18 Req. No. \*Req. No.*\Page 4
19 Req. No. 1642Page 1
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