Okla. Stat. tit. 17, § 17-158.27

- Notice of proposed rate increases - Petition by member-consumers -

Exemption of rural electric cooperatives.

A. The Corporation Commission shall have general supervision

over all associations or cooperative corporations as defined herein

with power to fix and establish rates and to prescribe rules

affecting their services, operation, and the management and conduct

of their business. It shall have full visitorial and inquisitorial

power to examine such associations or cooperative corporations and

keep informed as to their general conditions, their capitalization,

rates, plants, equipments, apparatus, and other property owned,

leased, controlled or operated, the value of same, the management,

conduct, operation, practices and services; not only with respect to

the adequacy, security and accommodation afforded by their service,

but also with respect to their compliance with the provisions of the

Retail Electric Supplier Certified Territory Act, and with the

Constitution and laws of this state, and with the orders of the

Commission. The provisions of this section shall not be applicable

to generation and transmission associations or cooperative

corporations, or transmission associations or cooperative

corporations.

B. 1. An association or cooperative corporation shall be

subject to rate investigations by the Commission pursuant to

subsection A of this section unless a proposed increase in rates and

charges does not exceed three percent (3%) based on the previous

twelve (12) months revenue generated by the existing rates; provided

however, that such association or cooperative corporation shall be

subject to subsection A of this section if:

a. the association or cooperative corporation elects, by

action of its board of trustees, to be subject to rate

investigation by the Commission,

b. the percentage of members, that according to bylaws

constitute a quorum not to exceed five percent (5%) of

the membership for that particular association or

Oklahoma Statutes - Title 17. Corporation Commission Page 94

cooperative have signed a petition requesting rate

investigation pursuant to paragraphs 3 or 4 of this

subsection, or

c. the Commission declares that the association or

cooperative corporation shall be subject to rate

investigations by the Commission pursuant to paragraph

6 of this subsection.

2. Each such association or cooperative corporation not subject

to rate investigation, at least ninety (90) days before the

effective date of any proposed rate increase, shall notify the

Commission and each of its member-consumers of the proposed rate

increase. Notice to the Commission shall include a verified

statement showing the then total number of member-consumers of the

association or cooperative corporation.

Notice by the association or cooperative corporation to its

member-consumers shall:

a. be in a form prescribed by this section,

b. be by regular mail and may be included in regular

member-consumer billings, and

c. include a schedule of the proposed rate schedules, the

effective date of the proposed rate increase and the

procedure necessary for the member-consumers to

petition the Commission to examine and determine the

reasonableness of the proposed rate increase.

3. The member-consumers of an association or a cooperative

corporation may petition the Commission to examine and determine the

reasonableness of the rates and charges proposed by the association

or cooperative corporation pursuant to subparagraph b of paragraph 1

of this subsection. The form of such a petition shall be

substantially in compliance with subsection C of this section. A

petition substantially in compliance with such form shall not be

deemed invalid due to minor errors in its form.

4. If, by the effective date of this proposed increase in rates

and charges, the Commission has received petitions from less than

the number of member-consumers as set out in subparagraph b of
uch a petition shall be

substantially in compliance with subsection C of this section. A

petition substantially in compliance with such form shall not be

deemed invalid due to minor errors in its form.

4. If, by the effective date of this proposed increase in rates

and charges, the Commission has received petitions from less than

the number of member-consumers as set out in subparagraph b of

paragraph 1 of this subsection, requesting that the Commission

examine the proposed increase in rates and charges, the Commission

shall immediately certify such fact to the association or

cooperative corporation. If, on or before the effective date of the

proposed increase in rates and charges, the Commission has received

petitions from the number of member-consumers as set out in

subparagraph b of paragraph 1 of this subsection or more, the

Commission shall notify the association or cooperative corporation

that it will examine and determine the reasonableness of the

proposed increase in rates and charges. Rates and charges

established by the Commission or by an association or a cooperative

corporation pursuant to this section shall be in force for not less

Oklahoma Statutes - Title 17. Corporation Commission Page 95

than one (1) year and no further increases in rates and charges

shall be permitted during said one-year period.

5. No cooperative corporation or association shall have the

right to receive more than one rate increase per year for any reason

or under any procedures.

6. In addition to the procedure for petition prior to any

proposed increase in rates and charges pursuant to paragraphs 1

through 4 of this subsection, the member-consumers of an association

or cooperative corporation may at any time petition the Commission

to declare the association or cooperative corporation be subject to

full scale rate investigation. If the Commission determines that a

majority of the member-consumers of an association or a cooperative

corporation have properly petitioned that the association or

cooperative corporation be subject to full scale rate regulations,

the Commission shall certify such fact to the association or

cooperative corporation and thereafter the association or

cooperative corporation shall be subject to full scale rate

investigation by the Commission until at least a majority of the

member-consumers of the association or cooperative corporation

properly petition that the association or cooperative corporation

shall no longer be subject to such full scale rate investigations by

the Commission. The form of such a petition shall substantially

comply with subsection C of this section.

A petition substantially in compliance with the form pursuant to

subsection C of this section shall not be deemed invalid due to

minor errors in its form.

7. Paragraphs 1 through 6 of this subsection apply only to the

rates and charges and shall have no effect on the Commission’s

jurisdiction over the associations or cooperative corporations or

the rules and regulations governing the operations of electric

utilities.

8. Each association or cooperative corporation, when

determining how rates and charges, established under paragraph 2 of

this subsection, are to be allocated to the different rate classes,

shall apportion such rates and charges in a manner which reflects,

as closely as practicable, the costs of providing service to that

class.

9. In no event, and under no circumstances, shall the

procedures herein provided be utilized for the purpose of

establishing special competitive rates in any area in which a

cooperative corporation is in direct competition with another

regulated retail electric supplier.

C. 1. A petition requesting the Commission to examine and

determine the reasonableness of a proposed increase in rates and

charges shall be in substantially the following form:

a. Form:

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special competitive rates in any area in which a

cooperative corporation is in direct competition with another

regulated retail electric supplier.

C. 1. A petition requesting the Commission to examine and

determine the reasonableness of a proposed increase in rates and

charges shall be in substantially the following form:

a. Form:

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The petition shall be headed by a caption, which shall

contain (1) the heading, “Before the Corporation

Commission of the State of Oklahoma”; (2) the name of

the association or cooperative corporation seeking an

increase in rates and charges; (3) the relief sought.

b. Body:

The body of the petition shall consist of four

numbered paragraphs, if applicable, as follows:

(1) Allegations of Facts: The allegations of facts

stated in the form of ultimate facts, without

unnecessary detail, upon which the right to

relief is based. The allegations will be stated

in numbered subparagraphs as necessary for

clarity,

(2) Legal Authority: Retail Electric Supplier

Certified Territory Act,

(3) Relief Sought: A brief statement of the amount

of the increase in rates and charges that is

objected to or other relief sought, and

(4) Petitioners: The name, address, telephone number

and signature of each member-consumer.

2. A petition requesting rate regulation of an association or

cooperative corporation shall be in substantially the following

form:

a. Form:

The petition shall be headed by a caption, which shall

contain (1) the heading, “Before the Corporation

Commission of the State of Oklahoma”; (2) the name of

the association or cooperative corporation seeking an

increase in rates and charges; (3) the relief sought.

b. Body:

The body of the petition shall consist of four

numbered paragraphs, if applicable, as follows:

(1) Allegations of Facts: The allegations of facts

stated in the form of ultimate facts, without

unnecessary detail, upon which the right to

relief is based. The allegations will be stated

in numbered subparagraphs as necessary for

clarity,

(2) Legal Authority: Retail Electric Supplier

Certified Territory Act, Sections 158.21 through

158.32 of Title 17 of the Oklahoma Statutes,

(3) Relief Sought: A brief statement of the reason

the petitioners seek the Commission to regulate

the rates and charges of the association or

cooperative corporation or other relief sought,

and

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(4) Petitioners: The name, address, telephone number

and signature of each member-consumer.

3. Petitions may only be signed by the member-consumer of the

association or cooperative corporation.

D. Upon proceedings brought by an interested person or by

action of the Commission, the Commission shall have the jurisdiction

to enforce compliance with the Retail Electric Supplier Certified

Territory Act, and shall have jurisdiction to prohibit furnishing

retail electric service by any retail electric supplier except in

its certified territory or territories, or where lawfully serving,

and in connection with such enforcement and prohibition to exercise

all powers herein or otherwise granted to the Commission.

E. 1. Rural electric cooperatives, which are owned by the

member-consumers they serve, are regulated by the member-consumers

themselves acting through an elected governing board. It is

declared that the regulation by the Commission under this section

may be duplicative of the self-regulation by the rural electric

cooperative and may be neither necessary nor cost-effective. It is

therefore the purpose of this subsection to determine the necessity

of regulation by the Commission by allowing the member-consumers of

a rural electric cooperative to exempt themselves from regulation by

the Commission except as provided herein.

2. Except as otherwise provided in paragraphs 4, 5, 6 and 7 of
he rural electric

cooperative and may be neither necessary nor cost-effective. It is

therefore the purpose of this subsection to determine the necessity

of regulation by the Commission by allowing the member-consumers of

a rural electric cooperative to exempt themselves from regulation by

the Commission except as provided herein.

2. Except as otherwise provided in paragraphs 4, 5, 6 and 7 of

this subsection, regulation by the Commission shall not apply to

rural electric cooperatives which comply with paragraph 3 of this

subsection.

3. To be exempt under paragraph 2 of this subsection from all

Commission regulation, except as provided for in this section, a

cooperative shall poll its members as follows:

a. an election under this subsection may be called by the

Board of Trustees or shall be called not less than one

hundred eighty (180) days after receipt of a valid

petition signed by not less than five percent (5%) of

the members of the cooperative,

b. the proposition for deregulation shall be presented to

a meeting of the members, the notice of which shall

set forth the proposition for deregulation and the

time and place of the meeting. Notice to the members

shall be written and delivered not less than twenty-

one (21) nor more than forty-five (45) days before the

date of the meeting,

c. if the cooperative mails information to its members

regarding the proposition for deregulation other than

notice of the election and the ballot, the cooperative

shall also include in such mailing any information in

opposition to the proposition that is submitted by

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petition signed by not less than one percent (1%) of

the cooperative’s members,

d. if the proposition for deregulation is approved by the

affirmative vote of not less than a majority of the

members voting on the proposition, the cooperative

shall notify the state Corporation Commission in

writing of the results within ten (10) days after the

date of the election, and

e. voting on the proposition for deregulation shall be by

mail ballot, provided, members attending the meeting

provided for in subparagraph b of this paragraph may

execute and deliver their ballot to the cooperative

during or at the conclusion of said meeting.

4. In the event the member-consumers have voted, pursuant to

paragraph 3 of this subsection, to exempt themselves from regulation

by the Commission, any such cooperative may vote no more than once

every twelve (12) months to place said cooperative under the

regulation of the Commission, as provided in this section. Said

question shall be submitted to the member-consumers of the rural

electric cooperative if at least five percent (5%) of the members of

the cooperative sign a petition requesting such an election. Such

petition shall be submitted to the membership in the same manner as

provided for in paragraph 3 of this subsection.

5. Each rural electric cooperative which has voted to exempt

itself from Commission regulation, when determining how rates and

charges established after such exemption are to be allocated to the

different rate classes, shall apportion such rates and charges in a

manner which reflects, as closely as practicable, the costs of

providing service to that class. Each cooperative which has

exempted itself from Commission regulation shall file and maintain a

copy of all current rates and charges with the Oklahoma Corporation

Commission.

6. In no event, and under no circumstances, shall rates and

charges established hereunder be utilized for the purpose of

establishing special competitive rates in any area in which a

cooperative is in direct competition with another regulated retail

utility supplier.

7. Notwithstanding the provisions of this section, the

Commission shall retain jurisdiction over all cooperatives who have

voted to exempt themselves from Commission regulation:
tes and

charges established hereunder be utilized for the purpose of

establishing special competitive rates in any area in which a

cooperative is in direct competition with another regulated retail

utility supplier.

7. Notwithstanding the provisions of this section, the

Commission shall retain jurisdiction over all cooperatives who have

voted to exempt themselves from Commission regulation:

a. for all purposes relating to certified territories

established under the Retail Electric Supplier

Certified Territory Act, and

b. for proceedings brought by a regulated utility

relating to alleged discriminatory or anti-competitive

rates established by an exempt cooperative, or

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relating to actions to acquire existing customers of a

regulated utility using such rates.