'We're in the air': What's next after OG&E franchise vote

Mar. 6—Uncertainty remains after Norman voters chose not to create a franchise agreement with Oklahoma Gas and Electric.

The franchise agreement, which would have given OG&E access to Norman right-of-ways, failed after 8,914 individuals voted against it, compared to 8,881 who voted in favor of it. OG&E has not operated in Norman under a franchise agreement since 2018, but has continued to access right-of-ways and provide electricity under an "implied contract."

This is the second year in a row Norman voters have shot down a proposed franchise agreement. Last year, 2,573 people voted against the measure, while 1,665 voted in favor of it.

In a statement released Tuesday night, OG&E Vice President of Marketing and Communications Christi Woodworth said while OG&E is disappointed in the election outcome, the company will continue to operate in Norman under an implied contract.

"OG&E has served Norman for more than 100 years and remains committed to our customers. We will continue to provide the electricity they need to power their homes and businesses," Woodworth said.

The implied contract was upheld in Cleveland County District Court by Judge Thad Balkman earlier this year.

Balkman cited Incorporated Town of Pittsburg v. Cochrane, a 1945 Oklahoma Supreme Court decision that established "an implied contract of indefinite duration arises and the company functions as a quasi-public utility subject to the terms of the former franchise" when a franchise agreement expires.

The services OG&E has provided in Norman have not meaningfully changed since 2018, but Mayor Larry Heikkila worries about what could happen if a higher court disagrees with Balkman's decision.

"We don't know what the courts are going to tell us," Heikkila said. "We've been working [under] the implied contract; if the implied contract is no good, what do we do?"

Heikkila also expressed concern that OG&E will stop making other investments in the community, using a $90,000 donation towards a solar power array at Irving Middle School as an example.

"Everything will be fine. The bottom's not going to drop out, OG&E's not going to turn us off. But also think about the things that happen with charitable giving. OG&E has been one of the great benefactors in the city," Heikkila said. "Are they going to be willing to do so now? I doubt it."

In her statement Tuesday night, Woodworth said OG&E would "evaluate the long-term status of other agreements or projects underway with the city."

When asked for clarification on whether Norman was at risk of losing projects, OG&E Manager of Corporate Communications Aaron Cooper reiterated that OG&E is "evaluating" its current plans.

"We typically work with cities and communities on agreements, independent of the franchise, that address areas like economic development or other specific needs of the community. We are evaluating the long-term status of such agreements and projects that are underway in Norman," Cooper said.

Critics of the franchise agreement were unhappy with the agreement's duration — 25 years, the maximum allowed by state law — and the lack of other provisions, such as commitments to bury power lines, curb the use of herbicide and invest in renewable energy.

Joe Carter, who was on City Council when the franchise agreement initially lapsed, characterized Tuesday's result as a victory and further called on the Oklahoma State Legislature to allow new municipally-owned electric utilities.

"It's an indictment of an entrenched $6 billion corporation that continues to use herbicides in people's backyards to save a couple bucks on trimming trees or burying electric lines while they sit on billions of dollars in cash in their bank accounts," Carter said in a statement issued to The Transcript.

Carter has been an outspoken critic of the franchise agreement, characterizing it as a source of leverage in negotiations with OG&E. During his time on Council, eastern Norman often suffered from blackouts and periods of reduced voltage, and when OG&E was unwilling to amend the franchise agreement in 2018 to include clear plans and timetables for infrastructure improvements, the City Council decided to let the amendment expire.

Representatives from OG&E say the franchise agreements are nearly identical across communities, and such provisions are typically made in separate contracts. After the franchise agreement expired, OG&E invested millions of dollars into improving eastern Norman's electric infrastructure.

"Over the last decade, we have moved to a standard agreement and then work with cities or towns on infrastructure or energy needs specific to that community," Cooper said. "We have franchise agreements with more than 200 communities in Oklahoma. Norman is the only community to reject a franchise agreement with OG&E."

Heikkila likened the unprecedented situation to riding off bicycle ramps in his youth.

"You'd be flying through the air, and then you kind of ask yourself the question: I don't know how to land this thing," Heikkila said. "Take happenstance as to what comes up next, and that's where we're at now. We're in the air."

Heikkila acknowledged the 33-vote margin on Tuesday, highlighting the importance of each individual's vote in municipal elections. He also said he was disappointed in voter turnout.

"Thirteen percent of the population voted on that," Heikkila said. "That's normal for us, but it's abysmal when you think about 13% of the population making decisions for 100% of the population."