OKLAHOMA CITY (OBV) — OG&E filed a proposed large-load tariff with the Oklahoma Corporation Commission that would create a pricing and regulatory structure for major energy users, including data centers.
The company said the proposed tariff is designed to protect existing customers from costs tied to rising energy demand by requiring large-load customers to pay specific rates, connection costs, and other charges.
OG&E said an independent review found the proposed customer protections to be among the most robust in the country.
“We are committed to protecting our customers while supporting Oklahoma’s economic growth and keeping energy reliable with some of the lowest rates in the country,” said Sean Trauschke, chairman, president, and CEO of OGE Energy Corp. “Our new large-load tariff proposal reflects a proactive approach to responsible planning with some of the nation’s strongest customer protections.”
Under the proposed tariff, large-load customers would pay upfront for 100% of the costs needed to connect to the grid, including transmission and distribution infrastructure. OG&E said those costs would not be passed on to other customers.
The proposal also includes a specific charge assigned to large-load customers to protect residential customers if adverse impacts occur. Customer protections would require OCC review and approval.
OG&E also proposed a monthly charge for large-load customers that would reduce residential customer bills by a total of $25 million to $30 million per year. The company said it would ask the OCC to approve credits for residential customers during rate reviews, depending on what would be most beneficial at the time.
Additional terms include billing minimums, early termination and capacity reduction fees, and financial collateral requirements. OG&E proposed a 15-year term with a maximum five-year ramp-up period.
The tariff would apply to new OG&E customers expected to demand at least 75 megawatts of energy. It also would apply to existing customers that add 75 megawatts of incremental demand, increase demand above 125 megawatts, or otherwise meet the 75-megawatt demand requirement.
The OCC will establish a procedural schedule to review the proposed tariff. Stakeholders and customers will have an opportunity to participate in the process, which is expected to take about six months.
OG&E said the proposal is part of its effort to stay ahead of rising cost trends affecting other parts of the country while maintaining affordability and reliability. The company said Oklahoma residential rates are 21% below the regional average and 33% below the national average.
