OKLAHOMA CITY — The Oklahoma Supreme Court on Tuesday approved the issuance of $800 million in bonds to lessen the financial burden on ratepayers stemming from a February 2021 winter storm.
The Oklahoma Development Finance Authority asked the court to approve the issuance following legislation that authorized it.
Fifteen protestants filed challenges to the bonds, primarily on the basis of constitutionality.
The bonds would cover the debt incurred by the Oklahoma Gas and Electric Co. from unprecedented fuel costs, according to the opinion.
The company’s ratepayers would fund the bond payments through a monthly charge, allowing customers to pay their utility bills at lower amount covering a longer period of time, according to the opinion.
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“The cost of natural gas for the Oklahoma utilities during the two weeks of extreme cold exceeded their entire fuel acquisition cost in 2020,” the opinion said.
The opinion said the process set forth in the legislation was followed and the bonds appear to be facially valid.
“Protestants provide no authority to the contrary, nor do Protestants even allege that the statutory process was not followed here,” the opinion said.
The protestants also alleged the bonds were unconstitutional because they went against the states’ balanced budget amendments.
“We reject this argument,” the opinion said. “In construing constitutional debt-limitation provisions, we have held the judiciary’s duty is to guard against indebtedness, not against modern methods of financing.”
The opinion noted that the Oklahoma Supreme Court had approved bonds for the Oklahoma Turnpike Authority to build toll roads. The bonds were retired with user fees, also called tolls.
Featured video: Time-lapse of February 2021's winter storm and meltdown
Watch Now: Time-lapse of February's winter storm and meltdown
