Commissioner renews call for audit of 2021 winter storm costs after two agencies report having none
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Oklahoma Corporation Commissioner Bob Anthony is renewing his call for a full-scale audit of the $3 billion in bonds issued after Winter Storm Uri.
In a statement released Monday to the media, Anthony echoed his call for a full-on audit of fuel and bond costs for the storm. He said he was told by both the state treasurer's office and the Oklahoma Development Finance Authority that neither agency has an audit from the storm.
"I recently did just that on behalf of the customers of OG&E, ONG, PSO and Summit," Anthony wrote. "I asked the ODFA, the State Treasurer’s Office and the Corporation Commission to provide me with copies of any audits related to the 2021 Winter Storm fuel costs and/or bonds. I was informed the Oklahoma Development Finance Authority does not have any copies of any audit related to the 2021 Winter Storm bonds and the State Treasurer similarly reported to me that his office does not have any audits related to the securitization transactions.”
Anthony said the bonds' authorizing statute specified audits of all costs requested for recovery, and of amounts actually collected from customers. He said the law requires that an audit … shall be part of any general rate case filed by a regulated utility … with outstanding ratepayer-backed bonds.”
Commissioner Bob Anthony called one-page audit 'another attempt at whitewash and cover-up'
In 2022, the Oklahoma Development Finance Authority issued roughly $3 billion of Winter Storm Uri ratepayer-backed bonds on behalf of Oklahoma Gas and Electric Co., Oklahoma Natural Gas, Public Service Co. of Oklahoma and Summit. On Sept.15, 2023, Corporation Commissioner Todd Hiett released a one-page audit of more than $1.3 billion of ONG’s February 2021 Winter Storm ratepayer-backed bond financing to the governor, legislative leaders and the finance authority.
Anthony said the one-page audit of ONG was “ludicrous, pitiful, farcically inadequate and another attempt at whitewash and cover-up.” He said the audit "did not remotely meet the criteria for an audit” as defined by state statute.
"Apparently even the ODFA doesn’t consider that one-pager an actual audit, since six months later when I asked the agency if it had copies of any Winter Storm audits, it said no," Anthony wrote. He said he was concerned that the rest of the commission, wasn't pushing for a full audit.
"(Commissioner Todd) Hiett then told OETA’s Oklahoma News Report, 'I certainly would welcome an audit to assure that the Corporation Commission has done everything correctly.' Talk is cheap," Anthony said. "The multi-billion-dollar debt burden under which Oklahoma ratepayers are suffering is not. Six months later, I am still waiting to cast a vote for Commissioner Hiett’s suggested independent audit of the 2021 Winter Storm costs and bonds — but I am not holding my breath. So the public charade about audits continues, including more one-pagers for the other utilities posted on the OCC website."
Hiett said Tuesday he encouraged Anthony to post a request for an audit and the commission would discuss it in an open meeting.
"We have a legal process at the Commission, and I have always encouraged any Commissioner to post matters of concern to an agenda for consideration by the full panel. Of course, the same holds true for Commissioner Anthony," Hiett said in an email to The Oklahoman.
Oklahoma's Public Utility Division unable to find firm for additional audits, commissioner says
Commission spokesman, Trey Davis, said the state auditor, the state securities commission and private sector accounting firms have been approached about conducting additional audits not required by law, and the Public Utility Division has had zero success in securing a firm.
"One private sector firm willing to discuss the request has stated its minimum cost to even begin an audit is approaching $500,000," Davis said in an email to The Oklahoman. "PUD’s request for these audits is being supported by the Director of Administration due to the ongoing attacks of division personnel whose character and professional livelihoods have been maligned for their work on these cases."
Davis said the one-page summary "was approved by the Commission for submission to the Governor, the Pro Tempore of the Senate, the Speaker of the House and the ODFA."
He said Anthony would receive information that "will include workpapers that summarize the intensive onsite work conducted in relation to the testimony submitted in various cases before the Commission and referenced by Commissioner Anthony in yesterday’s filing."
Opinion: Commissioner: 2021 winter storm costs are the worst financial abuse of Oklahoma ratepayers
Davis said the language in the section of law that was cited by Anthony "does not contemplate and has never contemplated an audit to be conducted in accordance with government auditing standards as required by the State Auditor."
"The OCC Public Utility Division’s audits are a laborious, voluminous, pain-staking and exacting inspection of a utility company’s financial records as it relates to the type of audit being conducted. These 'audits' are financial in nature in that we review often tens of thousands of records to validate the company’s position regarding the eight items noted above," Davis' email said. "Same word, somewhat different meaning and Commissioner Anthony knows this all too well. Only Commissioner Anthony claimed the one-page summary was the totality of the audit. Given his more than three decades at the Commission and vast experience in these matters, he surely knew he was mischaracterizing the report."
Aaron Cooper, a spokesman for OG&E, said its operations and costs from Winter Storm Uri have been scrutinized and found to be reasonable and prudent by the Corporation Commission.
"We support efforts by the Oklahoma Attorney General to investigate and claw back any costs charged to OG&E and our customers by any natural gas marketers who the attorney general finds exploited the situation," Cooper said in an emailed statement. "OG&E will continue to cooperate with the Corporation Commission’s ongoing statutory requirement to review all amounts received from customers and amounts paid to bondholders during its general rate reviews. We are proud we preserved customer health and safety by keeping the heat and lights on during this once-in-a-generation winter storm."
This article originally appeared on Oklahoman: Commissioner Bob Anthony wants thorough audit of Winter Storm Uri costs
