UNCONTESTED JOINT STIPULATION AND SETTLEMENT AGREEMENT

Exhibit 99.01

 

 

BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA

 

IN THE MATTER OF THE APPLICATION OF	)
OKLAHOMA GAS AND ELECTRIC COMPANY	)
FOR AN ORDER OF THE COMMISSION	)
AUTHORIZING APPLICANT TO MODIFY ITS	)	CASE NO. PUD 2023-000087
RATES, CHARGES, AND TARIFFS FOR RETAIL	)
ELECTRIC SERVICE IN OKLAHOMA	)

 

UNCONTESTED JOINT STIPULATION AND SETTLEMENT AGREEMENT

 

COME NOW the undersigned parties to the above-entitled case (“Stipulating Parties”) and present the following Joint Stipulation and Settlement Agreement (“Joint Stipulation”) for the Oklahoma Corporation Commission's (“Commission”) review and approval as their compromise and settlement of the issues in this proceeding. The Stipulating Parties represent to the Commission that this Joint Stipulation represents a fair, just and reasonable settlement of all issues (except the 1 MW Competitive Load Issue described in Paragraph II.13 below), that they believe the terms and conditions of the Joint Stipulation are in the public interest, and the Stipulating Parties request the Commission issue an order in this case adopting and approving this Joint Stipulation.

 

I. Jurisdiction of the Commission

The Stipulating Parties agree that the Commission has jurisdiction with respect to the issues presented in this proceeding by virtue of Article IX, §18 et seq. of the Oklahoma Constitution, 17 O.S. §152 et seq., 17 O.S. §251 et seq., the Commission’s Rules of Practice (OAC 165:5), and the Commission’s Electric Utility Rules (OAC 165:35).

 

II. Recommendations of the Stipulating Parties

This Joint Stipulation represents a settlement to become effective with the issuance of a Commission order approving this Joint Stipulation. The Stipulating Parties agree to the following terms for setting rates in this Case:

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Issue	Reduction
Update revenue requirement to reflect known and measurable changes as of March 31, 2024	$19.35 million
Return on equity – No increase (9.50%)	$51.13 million
Depreciation expense – FEA Production, PUD Transmission, OIEC Intangible, No change for Distribution and General plant	$74.19 million
Pension Regulatory Asset Amortization – 15 years	$6.81 million
Coal Inventory	$6.73 million
Insurance Expense	$0.07 million
Dues and Memberships	$0.63 million
Short Term Incentives – 50% Recovery	$7.64 million
Long Term Incentives – 0% Recovery	$8.96 million
Vegetation Management – $4 million increase to base rates	$20.00 million
Payroll Capitalization Ratio	$6.08 million
Directors and Officers Liability Insurance – 50% Recovery	$0.61 million
Investors Relations Expense – 50% Recovery	$0.37 million
Board of Directors Compensation – 50% Recovery	$1.45 million
Severance Expense	$0.53 million
Ad Valorem Tax Expense	$0.88 million
Transmission/Wind Allocation Impact on Rev. Req. & Misc.	$0.45 million

 

 

 

 

 

 

 

 

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III. General Reservations

The Stipulating Parties represent and agree that, except as specifically provided:

 

A. Negotiated Settlement

This Joint Stipulation represents a negotiated settlement for the purpose of compromising and resolving the issues presented in this case.

 

B. Authority to Execute

Each of the undersigned affirmatively represents to the Commission that he or she has fully advised his or her respective client(s) that the execution of this Joint Stipulation constitutes a resolution of issues which were raised in this proceeding; that no promise, inducement or agreement not herein expressed has been made to any Stipulating Party; that this Joint Stipulation constitutes the entire agreement between and among the Stipulating Parties; and each of the undersigned affirmatively represents that he or she has full authority to execute this Joint Stipulation on behalf of his or her client(s).

 

C. Joint Stipulation Represents a Balance and Compromise of Positions

The Stipulating Parties stipulate and agree that the agreements contained in this Joint Stipulation have resulted from negotiations among the Stipulating Parties. The Stipulating Parties hereto specifically state and recognize that this Joint Stipulation represents a balancing of positions of each of the Stipulating Parties in consideration for the agreements and commitments made by the other Stipulating Parties in connection therewith. Therefore, in the event that the Commission does not approve and adopt all of the terms of this Joint Stipulation, this Joint Stipulation shall be void and of no force and effect, and no Stipulating Party shall be bound by the agreements or provisions contained herein. The Stipulating Parties agree that neither this Joint Stipulation nor any of the provisions hereof shall become effective unless and until the Commission shall have entered an Order approving all of the terms and provisions as agreed to by the parties to this Joint Stipulation.

 

 

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D. No Admissions Nor Waivers

The Stipulating Parties agree and represent that the provisions of this Joint Stipulation are intended to relate only to the specific matters referred to herein, and by agreeing to this settlement, no Stipulating Party waives any claim or right which it may otherwise have with respect to any matters not expressly provided for herein. In addition, except as specifically set forth in this Joint Stipulation, none of the signatories hereto shall be deemed to have approved or acquiesced in any ratemaking principle, valuation method, cost of service determination, depreciation principle or cost allocation method underlying or allegedly underlying any of the information submitted by the parties to this case and except as specifically provided in this Joint Stipulation, nothing contained herein shall constitute an admission by any Stipulating Party that any allegation or contention in this proceeding is true or valid or shall constitute a determination by the Commission as to the merits of any allegations or contentions made in this proceeding.

 

E. No Precedential Value

The Stipulating Parties agree that the provisions of this Joint Stipulation are the result of negotiations based upon the unique circumstances currently represented by the Company’s Application and that the processing of this case sets no precedent for any future cases that the Applicant or others may file with this Commission. The Stipulating Parties further agree and represent that neither this Joint Stipulation nor any Commission order approving the same shall constitute or be cited as precedent or deemed an admission by any Stipulating Party in any other proceeding except as necessary to enforce its terms before the Commission or any court of competent jurisdiction. The Commission’s decision, if it enters an order approving this Joint Stipulation, will be binding as to the matters decided regarding the issues described in this Joint Stipulation, but the decision will not be binding with respect to similar issues that might arise in other proceedings. A Stipulating Party’s support of this Joint Stipulation may differ from its position or testimony in other cases. To the extent there is a difference, the Stipulating Parties are not waiving their respective positions in other cases. Because this is a stipulated agreement, the Stipulating Parties are under no obligation to take the same position as set out in this Joint Stipulation in other dockets.

 

F. Outstanding Discovery and Motions

As between and among the Stipulating Parties, any pending requests for information or discovery and any motions (other than the Motion to Strike filed by the Oklahoma Association of Electric Cooperatives) that may be pending before the Commission are hereby withdrawn.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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WHEREFORE, the Stipulating Parties hereby submit this Joint Stipulation and Settlement Agreement to the Commission as their negotiated settlement of this proceeding with respect to all issues raised within the Application filed herein by Oklahoma Gas and Electric Company or by Stipulating Parties to this case, and respectfully request the Commission to issue an Order approving the recommendations of this Joint Stipulation and Settlement Agreement.

 

			OKLAHOMA GAS AND ELECTRIC COMPANY
Dated:	6/12/24	By:	/s/ ▇▇▇ ▇▇▇▇▇▇
			▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Vice President, Public and Regulatory Affairs

 

			PUBLIC UTILITY DIVISION OKLAHOMA CORPORATION COMMISSION
Dated:	6/12/24	By:	/s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
			▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇, Director

 

			OKLAHOMA OFFICE OF THE ATTORNEY GENERAL
Dated:	6/12/24	By:	/s/ A. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
			A. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, Deputy Attorney General

 

			OKLAHOMA INDUSTRIAL ENERGY CONSUMERS
Dated:	6/12/24	By:	/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
			▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, Oklahoma Industrial Energy Consumers

 

			OG&E SHAREHOLDERS ASSOCIATION
Dated:	6/12/24	By:	/s/ ▇▇▇▇ ▇. ▇▇▇▇▇ ▇▇.
			▇▇▇▇ ▇. ▇▇▇▇▇ ▇▇., OG&E Shareholders

 

			WALMART INC.
Dated:	6/12/24	By:	/s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
			▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇, Walmart

 

			AARP
Dated:		By:
			▇▇▇▇ ▇. ▇▇▇▇▇▇, AARP

 

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			FEDERAL EXECUTIVE AGENCIES
Dated:	6/12/24	By:	/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
			▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Capt, USAF

 

			CMC STEEL OKLAHOMA
Dated:	6/12/24	By:	/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇

 

			OKLAHOMA ASSOCIATION OF ELECTRIC COOPERATIVES
Dated:	6/12/24	By:	/s/ ▇. ▇▇▇▇ ▇▇▇▇▇▇
			J. ▇▇▇▇ ▇▇▇▇▇▇, Oklahoma Association of Electric Cooperatives

 

			PETROLEUM ALLIANCE OF OKLAHOMA
Dated:	6/12/24	By:	/s/ ▇. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
			J. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, Petroleum Alliance of Oklahoma

 

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