The bill amends Section 286 of Title 17 of the Oklahoma Statutes, focusing on the cost recovery process for electric utilities regarding transmission upgrades and environmental compliance. It establishes a presumption that costs incurred for transmission upgrades approved by regional organizations are recoverable, unless evidence suggests otherwise. The bill also modifies the application process for utilities seeking to construct new electric generation facilities, particularly those using natural gas as their primary fuel source, and sets specific timelines for the Corporation Commission to respond to such applications. Additionally, it introduces provisions for utilities to periodically adjust their rates to recover costs associated with capital expenditures for compliance with various federal environmental laws.

Furthermore, the bill creates a new section, Section 286A, which allows public utilities to defer 90% of depreciation expenses and returns associated with qualifying electric plants placed in service after their last general rate case. This deferral is contingent upon the utility notifying the Corporation Commission of its election to defer these costs. The Commission is tasked with conducting a prudence review of the associated regulatory asset balances before they can be included in the utility's rate base. The bill outlines the treatment of these regulatory asset balances, including the accrual of carrying costs and the amortization of costs over a twenty-year period, ensuring that the financial implications of these deferrals are clearly defined.