Oklahoma Governor Brad Henry Signs Electricity Bidding Rules

By Price, Marie | THE JOURNAL RECORD, February 22, 2006 | Go to article overview

Oklahoma Governor Brad Henry Signs Electricity Bidding Rules


Price, Marie, THE JOURNAL RECORD


Gov. Brad Henry has signed emergency rules requiring electric utilities to competitively bid out costs such as transportation, fuel, purchased power and others.

The rules require a company to undergo a prudence review on items such as transportation or acquisition of fuel for generation unless they competitively bid them. If they do so, the rules provide a presumption that the results were bona fide bids.

We feel that the results of a great utilization of competitive bidding will be savings to the ratepayers and consumers, said Commissioner Bob Anthony.

The rules were submitted to Henry in January. Permanent rules will take effect by the end of the legislative session unless lawmakers amend them or turn them down.

Cheryl Vaught, attorney for RedBud Energy, an independent power producer with a plant at Arcadia, said the new rules represent a progressive, far-reaching step by the commission.

She said the rules should bring lower electric prices to Oklahoma's customers.

That's particularly important now in this time of higher fuel prices, she said. …

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Oklahoma Governor Brad Henry Signs Electricity Bidding Rules
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