OG&E hearing delayed as regulators weigh who pays to power data centers

By Devyn Lyon, FOX23 News

TULSA, Okla. — Oklahoma regulators have moved a hearing on OG&E’s proposed rules for large electricity users to January, extending a case that could help determine how the costs of powering data centers are divided and whether other customers could be left paying more.

The hearing, previously scheduled for November 3, is now set for January 12, 2027.

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The central question for households and small businesses is straightforward: as large customers connect to the electric grid, who pays for the power plants, lines and other equipment needed to serve them?

OG&E filed the case to seek approval of a proposed “large-load tariff.” A tariff establishes the rates, and service requirements customers must follow.

In this case, OG&E wants special payment requirements for very large electricity users, including data centers. Google is participating in the proceeding and advocating for changes to how those customers can obtain power.

In emailed responses to FOX23, OG&E said its proposal is intended to protect existing customers from costs associated with bringing large users onto the grid.

“Current customers should never pay for the impact of bringing large-load customers onto the electric grid,” the company said.

Simply put, OG&E wants large customers to make financial commitments, so the utility’s other customers are not left covering costs if a project uses less electricity than expected cuts back or closes. The company said its proposal would require large customers to:

  • Pay for infrastructure built to serve them
  • Sign long-term, binding contracts
  • Pay substantial minimum bills, even if they use less power than expected
  • Pay fees if they reduce their commitments of leave early
  • Provide financial security to back up those obligations

OG&E also argues those customers should contribute toward the costs of its existing power plants. There are proposed requirements, regulators must determine what rules to approve.

Google wants large customers to have the option to buy electricity from independent generators while continuing to use OG&E’s grid to receive it.

Google argues that approach could reduce the need for OG&E to build expensive new power plants. OG&E argues those arrangements could leave large customers paying less toward its existing plants while continuing to depend on the utility’s system.

The company also says it must maintain reliable service when a customer’s outside power source is unavailable. Its concern is that costs could fall to other customers if the large user does not adequately pay for that backup.

Buying electricity from another supplier would still involve using power lines and other grid infrastructure. The dispute is over which costs those customers would remain responsible for, and whether state law permits the arrangements being proposed.

The hearing delay itself does not approve a rate of increase or decide how those costs will be divided. The potential impact comes from the rules regulators ultimately adopt.

If large customers do not cover the costs assigned to serving them, other customers could face pressure to cover more. But, if outside power purchases reduce the need for costly new utility construction, that could also affect future costs.

Those competing arguments are part of what the commission must evaluate. Neither side’s position establishes what will happen to an individual customer’s bill.

OG&E said other parties’ proposals raised legal questions that should be addressed before the commission hears the evidence.

The company said it wants those parties to explain what law allows large customers to buy electricity from third-party generators while relying on OG&E’s grid.

OG&E said the additional time would allow those arguments to be considered before the hearing.

FOX23 also asked whether the requested date was connected to Commissioner Todd Hiett’s term ending January 11, one day before the rescheduled hearing.

The company said it was not, saying its request was driven by proposals introduced by parties.

The proceeding is Oklahoma Corporation Commission Case No. PUD2026-000046. Customers can search for that number in the commission’s Electronic Case Filing system to review filings, testimony, and orders.

The commission’s October 21 scheduling order is available here.

The January hearing is the next opportunity to examine the proposals and evidence. Moving that hearing does not resolve the underlying dispute over who should pay.

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