HB 1458 Summary - Affordable Energy Act

• Creates the "Affordable Energy Act" establishing procedures for utilities to petition the Oklahoma Corporation Commission for determination of need for nuclear power plants using nuclear material as fuel.

• Makes the Corporation Commission the sole forum for determining nuclear power plant need; requires hearing within 90 days of petition filing and final order within 135 days; creates presumption of public need and necessity upon approval.

• Establishes alternative cost recovery mechanisms allowing utilities to recover preconstruction and construction costs through capacity cost recovery clauses, with carrying costs at the AFUDC rate (or a fixed rate for petitions filed by December 31, 2012).

• Allows utilities to increase base rate charges upon commercial operation based on projected annual revenue requirements; permits recovery of net book value of retired generating plants over up to 5 years if retirement results from nuclear plant operation.

• Requires utilities to provide annual reports comparing budgeted and actual costs to estimated costs; allows cost recovery even if construction is abandoned, with recovery period equal to incurrence period or 5 years, whichever is greater.