Oklahoma's Right of First Refusal: Balancing electricity production and economic impact
OKLAHOMA CITY (KOKH) — The Senate Energy and Telecommunications Committee met today to examine the issue of the Right of First Refusal (ROFR), and how it relates to Oklahoma's electrical transmission system.
Sen. Lonnie Paxton requested the study to find the best method for responsible electricity production in the state.
The Federal Energy Regulatory Commission (FERC) regulates electric transmission and issued Order 1000 in 2011, which allows regional transmission organizations, such as the Southwest Power Pool that Oklahoma is under, to use competitive bidding for transmission project development.
Then in 2013, state legislation was approved that allows incumbent electric transmission providers to have the ROFR to build electric transmission lines at 300 kV (300,000 volts) and under.
Legislators are deciding if Oklahoma should allow such entities to have the ROFR at higher voltage levels, such as 345 kV.
"Oklahoma ranks sixth nationally for the highest electrical rates. This is a critical issue that impacts our economy, business community, and consumers. We need to find the best path forward to provide efficient, reliable, and affordable electrical service to our citizens and businesses... We'll keep the best interests of Oklahoma ratepayers at the forefront of our decision-making as we continue studying this important issue. I appreciate the wide range of perspectives provided during this study and look forward to working with all stakeholders to find the best solution for Oklahoma", Paxton said.
Proponents of expanding the ROFR say it would facilitate the development of much-needed new transmission infrastructure and is necessary to maintain state control and stop federal encroachment.
Sen. Lonnie Paxton has requested the study to find the best method to have responsible electricity production in the state.
“This is a critical issue that impacts our economy, business community and consumers. We need to find the best path forward to provide efficient, reliable, and affordable electrical service to our citizens and businesses,” Paxton said. “Given the complexity of this issue and its widespread impact, we’ll continue having discussions in the coming months. We’ll keep the best interests of Oklahoma ratepayers at the forefront of our decision-making as we continue studying this important issue. I appreciate the wide range of perspectives provided during this study and look forward to working with all stakeholders as we work to find the best solution for Oklahoma.”
However, opponents say such a change would be anti-business, increase rates for Oklahoma consumers, and cost the state billions of dollars in future transmission projects.
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