OKLAHOMA CITY – An appeal brief filed Thursday by Rep. Tom Gann, R-Inola, asks the Oklahoma Supreme Court to invalidate some $700 million in ratepayer-backed bonds issued to cover costs incurred by Public Service Company of Oklahoma (PSO) during February 2021’s Winter Storm Uri. Payments for those bonds have been collected on the monthly bills of PSO’s customers since the bonds were issued in September 2022. They are scheduled to continue for another 17 years. Gann’s brief tells the court that the Oklahoma Corporation Commission (OCC) failed to provide a required audit of the bonds in PSO’s most recent rate case. He also argues PSO’s original 2021 Uri costs that were securitized into the bonds were never audited either. Gann asserts the audit failures are fatal in both cases, making the OCC’s orders void. The brief says Oklahoma utilities PSO, Oklahoma Gas & Electric Co. (OG&E), Oklahoma Natural Gas (ONG) and CenterPoint/Summit paid some of the highest natural gas prices in U.S. history during two weeks in February 2021, incurring some $2.8 billion in debt. Interest and other expenses added another $2 billion, bringing the total cost of the bonds being paid by Oklahoma utility customers close to $5 billion. Gann’s brief relies heavily on a report by former Oklahoma Accountancy Board Chairman David Greenwell filed at the OCC in July 2024. In it, Greenwell said the OCC’s audit activities with respect to the winter storm costs and bonds “do not appear to comply with state law.” Former OCC Commissioner Bob Anthony also repeatedly criticized the one-page audits the OCC was putting forward to meet statutory requirements. “When Oklahoma law requires an audit, the Accountancy Act says it has to be done by independent, licensed CPAs following nationally recognized standards,” said Gann, who is a former internal auditor for Tulsa International Airport. “Unbelievably, the OCC allowed the utilities to audit themselves after the winter storm. And OCC employees who are not CPAs have performed fake audits of the bonds ever since.” Gann has asked the court to order everything that was wrongly collected from PSO’s customers to be refunded. He says that includes $130-million and $120-million rate increases approved by the OCC in November 2023 and January 2025. It also includes about $140 million of Winter Storm bond payments already collected as “Winter Storm Cost Recovery Rider” charges on PSO customer bills. OCC Commissioner Todd Hiett cast the deciding vote to approve each of the OCC orders Gann is challenging. Gann’s brief argues the orders also should be overturned because Hiett violated state ethics rules by participating in the cases. Hiett has been publicly accused of alleged sexual harassment and drunk driving at a 2023 party hosted by PSO’s attorneys. Even though no charges have been filed, Gann’s brief says Hiett’s behavior has made him subject to undue influence and possible extortion by those attorneys and others, and a reasonable person would question his impartiality in PSO cases. In May 2025, the Ethics Commission dismissed a complaint against Hiett, finding that in this particular instance, Ethics Rule 4.7’s prohibition against conflicts of interest was not an issue. The Ethics Commission stated at the time that their decision took into account the constitutional requirements for the Corporation Commission, the legislative nature of the rate hikes and Oklahoma case law, including the well-recognized Rule of Necessity. Gann’s brief argues Commissioner Hiett should not have been held exempt from this rule and asks the Supreme Court to say so. Similar Supreme Court appeals have also been filed in rate cases for OG&E and ONG. Gann has been joined by Reps. Kevin West, R-Moore, and Rick West, R-Heavener, in those appeals. Gann’s full Brief in Chief can be read online here: https://www.oscn.net/dockets/GetDocument.aspx?ct=appellate&bc=1062686746&cn=CU-122861&fmt=pdf PSO, the OCC and the Attorney General’s Office have 40 days to respond. The progress of all the appeals can be followed on the Oklahoma Supreme Court website: PSO rate case: https://www.oscn.net/dockets/GetCaseInformation.aspx?db=appellate&number=122861 ONG, PSO & OG&E CY2023 fuel cases: https://oscn.net/dockets/GetCaseInformation.aspx?db=appellate&number=122991 OG&E rate case: https://oscn.net/dockets/GetCaseInformation.aspx?db=appellate&number=123021 ONG rate case: https://oscn.net/dockets/GetCaseInformation.aspx?db=appellate&number=123348
OKLAHOMA CITY – House Democratic Leader Cyndi Munson, D-Oklahoma City, released the following statement of condolences after the passing of Potts Family Foundation co-founder Pat Potts. “My heart is with the Potts family at this time as well as everyone who knew and loved Pat Potts,” said Leader Munson. “Her decades of public service and work toward a brighter future for Oklahomans will have long lasting impacts. Pat made it her life’s work to invest in our youth and give them the best opportunities to succeed. Her values and commitment to children and families never wavered during her run for the Oklahoma House of Representatives and the Oklahoma Senate. She was incredibly supportive of my own run for office, encouraging me to make my voice heard as a young woman in politics. I am proud to not only have her as a constituent, but also as a friend and fellow Oklahoman. She was a selfless woman who loved Oklahoma enough to make incredible change through her work and the Potts Family Foundation and she will be greatly missed.” -END-
Rep. Gerrid Kendrix, R-Altus, today joined Governor Kevin Stitt for a ceremonial bill signing of a bill that eliminates the use of Chevron deference, a legal test that limited the ability of courts to interpret ambiguous administrative rules. Kendrix, who serves as House Administrative Rules Chair, authored House Bill 2729 , which entrusts courts with the responsibility of interpreting legislative intent related to administrative rules under legal scrutiny. "Ending the use of Chevron deference ensures that the rule of law, not the rule of regulators, governs in Oklahoma," Kendrix said. "When the agencies that write the rules are the default interpreters of rules, rather than the courts, we strip the judicial branch of the authority it needs to rein in bureaucratic overreach. I appreciate the support of the governor and my legislative colleagues who understand the valuable, but complex, role of administrative rules in our state government." The Chevron deference, established through a 1984 U.S. Supreme Court ruling, required courts to defer to an agency's interpretation of administrative rules. After the legal test was overturned in June 2024, courts could again independently determine the legislative intent of ambiguous rules. Administrative rules are the regulations written by state agencies to implement laws passed by the Legislature. While statutes set broad policy, rules provide the practical instructions needed to enforce those laws. Administrative rules proposed by state agencies must move through a legislative process and, once approved, have the force of law. "Administrative rules are a slippery slope," Kendrix said. "Without proper legislative oversight and full authority of our courts, it is very easy for an agency, intentionally or not, to overstep legislative intent and bypass the will of the people expressed through their elected representatives. It is a tricky area of our government, but one that I believe is vitally important to protecting the liberties of our citizens and preserving the boundaries of government power." Kendrix also carried three other administrative rule reform measures , all of which became law: House Bill 2728 creates the Regulations from the Executive in Need of Scrutiny (REINS) Act of 2025, which establishes new statutory requirements for state agencies adopting major administrative rules. The nonpartisan Legislative Office of Fiscal Transparency (LOFT) is tasked with conducting impact analyses for proposed rules with a significant fiscal impact. Senate Bill 995 clarifies that any rule not explicitly approved by the Legislature is considered disapproved. Senate Bill 1024 prohibits the adoption of a proposed rule by an agency unless the agency receives approval from the Governor or the appropriate cabinet secretary. HB2729 takes effect Nov. 1. The other three administrative rules reform measures took effect immediately upon being signed into law.