Your Vote and Voice Matter

Opting out of the OCC's regulation oversight will offer several benefits for members. Firstly, it will lead to significant savings on regulatory fees and costly studies mandated by the OCC. Moreover, the decision-making process will become less bureaucratic, facilitating quicker action. Additionally, opting out will accelerate CVEC’s adoption of technological advancements, like distributed generation, by streamlining bureaucratic procedures, and allow CVEC to implement programs that directly benefit members more swiftly. 

CVEC is bringing this vote to you, our valued members-owners, because we want to ensure that we operate in the most efficient and flexible manner possible. By opting out of OCC regulation, per Okla. Stat. tit. 17, §158.27(E), we aim to streamline processes, reduce costs, and enhance our ability to provide efficient and innovative services to our members. Your input and vote are essential in deciding the direction of our cooperative's governance.

In 1972, Oklahoma's electric cooperatives agreed to regulation by the OCC in exchange for securing territorial boundary protection. The 1972 agreement aided in minimizing redundant infrastructure, thus preventing increased costs for all utility ratepayers.

According to Okla. Stat. tit.17, §158.27(E)(1), rural electric cooperatives, which are owned by the member-consumers they serve, are regulated by the member-consumers themselves acting through an elected governing board. The law declares that regulation by the OCC under this section may be duplicative of the self-regulation by the rural electric cooperative and may be neither necessary nor cost-effective. 

No, if CVEC's members choose to exempt it from OCC regulation, per Okla. Stat. tit. 17, § 158.27(E), CVEC will retain territorial boundary protection without any loss. All electric utilities in Oklahoma, not just cooperatives, are subject to regulation regarding territorial boundaries.

Your elected Board of Trustees retains the authority and responsibility to set rates as it has for the entire life of CVEC. This decision-making is historically conducted by impartial rate studies required by law. Moreover, Okla. Stat. tit. 17, § 158.27(E)(4) provides additional safeguards by requiring every cooperative who has exempted itself from OCC regulation to apportion rates and charges in a manner which reflects, as closely as practicable, the costs of providing service to that class, when determining how rates and charges are to be allocated to the different rate classes. Further, cooperatives who have exempted themselves from OCC regulation shall file and maintain a copy of all current rates and charges with the OCC. 

Whether you vote to opt out of OCC regulation or to remain under it, rate changes are occasionally necessary. CVEC is one of the lowest cost cooperatives in the state of Oklahoma. Oklahoma is the 5th lowest ranked state when it comes to energy costs. Note that under the OCC, there are more costs associated with regulatory processes, which impact the cooperative and our membership. 

Each time CVEC's Board of Trustees determines changes regarding CVEC are necessary, it undergoes a rigorous regulatory process with the OCC. This involves submitting an application, which is time-consuming, and approval can take a significant amount of time. For example, the recent pre-paid metering program took 12-18 months for approval under the OCC's oversight. By opting out of OCC regulation, CVEC can introduce beneficial options and programs more promptly, enabling Trustees to respond swiftly to evolving business conditions and needs.

Opting out of the OCC's regulatory oversight will yield savings for both CVEC and its members. Members will note that the monthly assessment fee, which is included in their monthly bill, will stop. Other notable reductions include reductions in regulatory fees and expenses related to mandated studies by the OCC. Additionally, savings will be realized on staff expenses related to the preparation and analysis of required, but not necessary, reports, as well as the expenses associated with consultants and lawyers who assist in the preparation and presentation of applications to the OCC.

Since the law's enactment, 24 out of 29 distribution cooperatives in Oklahoma have chosen to exempt themselves from regulation by the OCC. CVEC is 1 of the 5 that remains. Only 2 of the remaining cooperatives are headquartered in Oklahoma. The other 3 straddle the state line and are required to be regulated by the Arkansas Public Service Commission and the OCC.

Yes. If after a cooperative has voted to exempt itself from OCC regulation, a cooperative may vote no more than once every 12 months to place the cooperative back under the regulation of the OCC. The question of whether to place the cooperative back under the regulation of the OCC shall be submitted to the members if at least 5% of the members sign a petition requesting such a vote.