Legislative actions bring both opportunities, challenges to electric co-op

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New state laws passed during the 2025 legislative session will change how utilities operate, how land is used for energy projects and how Oklahoma plans for future electricity needs, according to Oklahoma Electric Cooperative.

In its latest legislative update, OEC outlined several bills that will directly affect electric cooperatives and their members, particularly in the areas of landowner rights, transmission line development and energy source options.

House Bill 2752, authored by Rep. Trey Caldwell, R-Faxon, stops private developers from using eminent domain to build renewable energy projects such as wind, solar, hydrogen or battery storage facilities. It also requires companies planning to build high-voltage transmission lines, 300 kilovolts or higher, and/or using eminent domain to first obtain a certificate of authority from the Oklahoma Corporation Commission. HB 2752, approved by Gov. Kevin Stitt, is set to be effective Nov. 1.

House Bill 2756, the High-Voltage Electricity Transmission Facility Act, co-authored by Rep. Caldwell and Sen. Grant Green, R-Wellston, explains the process for getting that certificate. Applicants must submit detailed route plans, hold public hearings and show a clear need for the project.

The law does not expand eminent domain powers but sets specific rules for building high-voltage lines. Electric cooperatives and retail electric suppliers will not need the certificate for upgrades or extensions to their existing lines. HB 2756 passed through the Legislature and became law without the Governor's signature.

Senate Bill 480, the 'Behind the Meter' bill co-authored by Sen. Green and Rep. Brad Boles, R-Marlow, allows large commercial and industrial customers to build “behind-the-meter” power systems, often natural gas-powered, on their own property which could help businesses reduce their reliance on the electric grid but may also create new challenges for coops in managing peak demand and planning future infrastructure. SB 480 passed through the Legislature and was signed into law by Gov. Stitt, taking effect on July 1.

OEC reports that rural Oklahoma is seeing fast-growing demand for electricity, fueled by new data centers and cryptocurrency mining operations that operate 24/7 and require large amounts of power. Lawmakers are considering solutions such as microgrids, energy storage systems and specialized rate plans to address these needs while maintaining grid reliability.

OEC said the 60th Oklahoma Legislature’s actions bring both opportunities and challenges as some policies may open doors for innovation, others will require adjustments in operations and planning.

“As new laws take effect, we remain focused on reliability, affordability, and fairness, planning for growth while protecting members’ property rights and access to energy,” OEC said in its legislative update. The cooperative added it will continue working with lawmakers to keep community needs at the center of energy policy decisions.

What this means for OEC members:

• Private developers can no longer take land for renewable energy projects without consent.

• Only certain high-voltage line projects need special approval, and co-op upgrades won’t be affected.

• Large businesses can build on-site power systems, which could change how co-ops manage the grid.

• Growth in industries like data centers may require new solutions to keep electricity reliable for everyone.

There are 30 electric co-ops in Oklahoma, according to the Oklahoma Association of Electric Cooperatives, a statewide association created and voluntarily supported by local electric distribution and generation and transmission cooperatives. There are 27 distribution electric cooperatives (two of which are headquartered in Arkansas) and three generation and transmission electric cooperatives (one of which is headquartered in Texas), OAEC’s website states.

OEC provides electricity to approximately 64,500 customer accounts in 22 municipalities in Caddo, Canadian, Cleveland, Grady, McClain, Oklahoma and Pottawatomie counties.