Bill Number: OK51RSB 734 Date: 02-20-2007
SENATE FLOOR VERSION
THE STATE SENATE
1 Tuesday, February 20, 2007
2 Senate Bill No. 734
3 SB 734
4 SENATE BILL NO. 734 - By: MORGAN and GUMM of the Senate and
5 ADKINS of the House.
6 An Act relating to electric service; declaring legislative
7 intent relating to study of certain issues relating to retail
8 electric consumer choice in this state; creating the Joint Electric
9 Utility Restructuring Task Force; stating membership; providing for
10 officers and meetings; stating requirements for study; providing for
11 travel reimbursement; providing for staffing; authorizing reports
12 and recommendations; providing for termination; providing for
13 noncodification; providing for codification; and declaring an
14 emergency.
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
16 SECTION 1. NEW LAW A new section of law not to be
17 codified in the Oklahoma Statutes reads as follows:
18 The 46th Oklahoma Legislature enacted the Electric
19 Restructuring Act of 1997 following an extensive study by
20 legislators, regulators, electric industry representatives,
21 industrial, commercial and residential electric consumers. The act
22 codified several statutory requirements and created a procedure of
23 policies and directives anticipated to be followed by future
24 enabling legislation to ensure an orderly and equitable
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1 restructuring of the electric utility industry in this state. Some
2 of statutory restrictions enacted in the 1997 Act, including a
3 prohibition on customer switching and restricting municipal entities
4 from extending service in certain areas, were designed to limit
5 anticipated problems which may have been created if many consumers
6 began switching their electric service providers prior to the
7 enactment of legislation which would permit all consumers retail
8 choice of electric generation providers. The Legislature determined
9 that a statutory prohibition was needed to prevent unnecessary
10 duplication of costly electric distribution and transmission
11 facilities which would increase costs for all consumers.
12 Soon after the enactment of the Electric Restructuring Act of
13 1997 the momentum toward restructuring was effectively curtailed by
14 national crises, such as the collapse of the Enron Corporation and
15 costly power failures, electric service curtailments and allegations
16 of illegal trading in the State of California. Consequently, future
17 Legislatures abandoned the plan to enact a significant restructuring
18 act to allow consumers retail choice of their electric generation
19 providers. The resulting status is that the 1997 legislation with
20 its anticipatory and preliminary restrictions has remained in
21 effect, without the enabling legislation that was planned to replace
22 them. This has created uncertainty in the electric industry and
23 lawsuits and legal actions have resulted.
24 Meanwhile, the electric industry is ever-changing to keep pace
25 with consumer demands and once again there is a national trend
26 toward restructuring. Significant changes to implement a
27 transmission marketplace have already taken place which affects all
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1 electric suppliers in our region.
2 It is hereby the intent of the 51st Legislature to direct
3 significant further legislative study to clarify the legal issues
4 resulting from the previous legislative actions for the benefit of
5 the electric service providers in our state and ascertain the wishes
6 of the citizens of this state to move forward with this process.
7 SECTION 2. NEW LAW A new section of law to be codified
8 in the Oklahoma Statutes as Section 190.21 of Title 17, unless there
9 is created a duplication in numbering, reads as follows:
10 A. There is hereby created a Joint Electric Utility
11 Restructuring Task Force which shall be composed of the members of
12 the Oklahoma State Senate Energy and Environment Committee and the
13 Oklahoma House of Representatives Energy and Technology Committee
14 and the Chairman of the Corporation Commission, or designee. The
15 task force shall be jointly chaired by the chairs and co-chairs of
16 the Senate and House committees.
17 B. A majority of the members serving on the task force shall
18 constitute a quorum. The task force shall meet at such times and
19 places as it deems necessary to perform its duties as specified
20 herein. Meetings shall be at the call of the chairs.
21 C. The task force shall study the following issues:
22 1. The ability of a municipality to annex and serve customers
23 inside the territory of another electric provider;
24 2. The condemnation and reuse of electric facilities;
25 3. The statutory prohibition on consumer switching electric
26 service providers established in Section 190.7 of Title 17 of the
27 Oklahoma Statutes;
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1 4. Court rulings and pending litigation filed as a result of
2 interpretations of the Electric Restructuring Act of 1997, Sections
3 190.1 et seq. of Title 17 of the Oklahoma Statutes;
4 5. The effect of regional transmission organizations on the
5 electric generation marketplace;
6 6. The impact of changes in other states in our region and
7 nationwide relating to retail choice of electric services by
8 consumers;
9 7. Other issues the task force deems necessary to adequately
10 study electric restructuring in this state.
11 D. The task force shall solicit the input of all stakeholders
12 involved in the provision and consumption of electric service. To
13 further enhance such participation, the task force may appoint
14 advisory councils made up of representatives of various stakeholders
15 or invite any other persons as needed to advise the task force in
16 any matter they deem appropriate and necessary.
17 E. Members of the task force shall be reimbursed by their
18 appointing authorities for necessary travel expenses incurred in the
19 performance of their duties in accordance with Section 456 of Title
20 74 of the Oklahoma Statutes.
21 F. The Oklahoma State Senate and House of Representatives
22 shall provide such staff support as is required by the task force
23 and any other state agency shall provide support as requested by the
24 task force. The task force is authorized to employ any legal
25 counsel, independent consultants, or other persons as necessary and
26 approved by the President Pro Tempore of the Senate and the Speaker
27 of the House of Representatives.
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1 G. The task force may issue any reports it deems necessary
2 and appropriate and may make any legislative recommendations
3 available to the Governor and the Legislature. The Legislature
4 shall review any reports or recommendations developed by the task
5 force. Final authority relating to the implementation of any
6 recommended statutory revisions shall reside with the Legislature.
7 H. The task force shall remain in effect and operate as
8 herein directed until its termination which shall be no later than
9 December 1, 2009. The task force may elect, by majority vote, to
10 terminate its operations at an earlier date if it deems such action
11 appropriate.
12 SECTION 3. It being immediately necessary for the
13 preservation of the public peace, health and safety, an emergency is
14 hereby declared to exist, by reason whereof this act shall take
15 effect and be in full force from and after its passage and approval.
16 COMMITTEE REPORT BY: COMMITTEE ON ENERGY & ENVIRONMENT, dated
17 2-15-07 - DO PASS, As Coauthored.
18 Req. No. \*Req. No.*\Page 1
19 SB734 SFLR1State Senate
20 (Bold face denotes Committee Amendments)
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