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Committee approves committee substitute allowing behind-the-meter generation for economic development

2363639 · February 20, 2025
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Summary

A committee substitute for Senate Bill 480, described as a behind-the-meter economic development tool, passed the committee unanimously (10-0). The measure would exempt certain on-site generation from OCC jurisdiction if it qualifies as private, non-utility generation.

The committee approved a committee substitute for Senate Bill 480 by unanimous recorded vote. Senator Green presented SB480 as a tool to allow private facilities — such as data centers or other large energy consumers — to deploy on-site generation "behind the meter" to enable recruitment and expedite operations without imposing costs on ratepayers.

Green described the measure as a mechanism "for economic development that does not put a strain on the grid nor a financial burden on ratepayers" and said it would allow private generation where the facility would not be a utility and therefore not report to the Oklahoma Corporation Commission (OCC). "This is a very doable thing to not stop economic development," Green said.

Senators questioned whether behind-the-meter generation would permanently avoid OCC oversight and whether entities in co-op or municipal territories would be affected. Jeff Rush of the OCC had earlier testified in committee that true islanding avoids OCC jurisdiction but that any subsequent interconnection would require OCC involvement and interconnection agreements with Southwest Power Pool and incumbent utilities.

After debate the clerk called the roll and recorded 10 ayes and 0 nays on SB480; the chair declared the committee substitute passed and the chair turned the gavel back to the committee chair.