Prospective-Only Enforcement of RESCTA’s “Large Load” Rule: No Third-Party Transmission “Extensions,” But Existing Service Remains Undisturbed
1. Introduction
In OKLAHOMA ELECTRIC COOPERATIVE v. STATE ex rel. OKLAHOMA CORPORATION COMMISSION, the Oklahoma Supreme Court reviewed an Oklahoma Corporation Commission (Commission) order denying injunctive relief sought by Oklahoma Electric Cooperative, Inc. (OEC) (joined by the Oklahoma Association of Electric Cooperatives) against Oklahoma Gas and Electric (OG&E). OEC contended OG&E was unlawfully providing retail electric service to Blue Mountain Midstream, LLC’s Chisolm Trail Plant—a large cryogenic natural gas facility located inside OEC’s certified territory—by relying on RESCTA’s “Large Load” exception and by interconnecting through a third-party transmission line.
The case sits within a line of “companion cases” addressing the scope of the Retail Energy Supplier Certified Territory Act (RESCTA), particularly whether the “Large Load” exception allows a supplier to “extend” service into another supplier’s exclusive territory by tapping third-party transmission facilities. While the Commission denied OEC’s requested injunction on equitable defenses (laches, estoppel, waiver), the Supreme Court resolved the controversy through intervening precedent—most importantly its recent decision in Oklahoma Gas & Electric Co. v. Oklahoma Corp. Comm’n, 2025 OK 15, 565 P.3d 418 [People’s].
The key issues were:
- Statutory scope: Does RESCTA’s “Large Load” exception permit OG&E to “extend” retail service using third-party transmission lines?
- Remedy and timing: If not, can OG&E be enjoined from continuing service that began years earlier?
- Justiciability: After People’s announced a prospective-only rule, are OEC’s challenges to the Commission’s equitable-defense findings moot?
2. Summary of the Opinion
The Court held that RESCTA’s “Large Load” exception does not permit a supplier to connect with third-party transmission lines to extend service into another supplier’s certified territory, aligning with People’s. However, because People’s applies prospectively only (preserving existing large-load service arrangements already established), the Court concluded OEC could obtain no effective injunctive relief in this case. As a result, the Court affirmed the Commission’s order insofar as it permits OG&E to continue serving the Plant.
Critically, the Court deemed further review of the Commission’s reliance on laches/estoppel/waiver moot, because—even if OEC were correct on those points—the prospective-only limitation in People’s foreclosed the injunction OEC sought.
3. Analysis
A. Precedents Cited
1) Oklahoma Gas & Electric Co. v. Oklahoma Corp. Comm’n, 2025 OK 15, 565 P.3d 418 [People’s]
People’s is the controlling precedent and supplies the dispositive rule: RESCTA’s “Large Load” exception does not authorize a supplier to “extend” service by tapping third-party transmission facilities to reach a customer located in another supplier’s certified territory. In this opinion, the Court treats that question as “now settled” and applies People’s to conclude OG&E’s method of service is not permitted under RESCTA.
But People’s also announced prospective-only application to avoid inequity and wasteful duplication where suppliers and customers had already made substantial investments in reliance on prior regulatory understandings. This case uses that prospective-only limitation to explain why OEC cannot obtain an injunction compelling OG&E to cease existing service to the Plant.
2) Oklahoma Gas & Elec. Co. v. State ex rel. Oklahoma Corp. Comm'n [CKenergy 1], 2023 OK 33, 535 P.3d 1218
The opinion describes the doctrinal path that led to People’s. In CKenergy 1, the Court had held the Large Load exception did not prohibit the use of open-access transmission lines and vacated a Commission order that had enjoined OG&E. People’s later overruled CKenergy 1, adopting the opposite statutory interpretation. This case reinforces that CKenergy 1 is no longer the governing rule on third-party transmission “extensions.”
3) Oklahoma Gas & Elec. Co. v. Oklahoma Corp. Comm'n, 2025 OK 43, 571 P.3d 729
Although not central to the third-party transmission issue, the Court references this companion decision for interpretive context: it defined “connected load” under RESCTA’s Large Load exception as “the total electric power-consuming rating, or ‘nameplate rating,’ of all devices connected to a distribution system.” The citation illustrates the Court’s broader engagement with RESCTA’s technical vocabulary and reinforces that statutory meaning in this area is being clarified through a coordinated set of companion cases.
4) Mootness and justiciability authorities
The Court relies on established Oklahoma mootness doctrine to avoid adjudicating issues that cannot yield effective relief:
- Rogers v. Excise Bd. Of Greer Cty., 1984 OK 95, 701 P.2d 754 (no decision on abstract/hypothetical questions where no practical relief may be granted).
- Westinghouse Elec. Corp. v. G.R.D.4., 1986 OK 20, 720 P.2d 713 (moot issues are not decided).
- Chicago, R.1. & P. Ry. Co. v. Territory, 1908 OK 110, 97 P. 265 (declining to decide moot/abstract propositions).
- State ex rel. Oklahoma Firefighters Pension & Ret. Sys. v. City of Spencer, 2009 OK 73, 237 P.3d 125 (defining mootness as a condition preventing effective appellate relief; controversy must persist through review).
- Baby F. v. Oklahoma Cty. Dist. Ct., 2015 OK 24, 348 P.3d 1080 (recognizing exceptions: broad public interest; capable of repetition yet evading review).
The Court applies these to conclude that, given People’s prospective-only rule, OEC’s equitable-defense challenges cannot alter the remedy, rendering those issues moot. It further holds neither mootness exception applies because People’s resolves the underlying statutory controversy and there is no meaningful likelihood the Commission will repeat the specific action.
5) Constitutional standard of review for Commission orders (Okla. Const. art. IX, § 20)
The opinion reiterates the special posture of Commission appeals under Okla. Const. art. IX, § 20, including a limited de novo lens for statutory interpretation (the Court gives “some regard” but does not treat Commission interpretations as binding precedent) and otherwise asks whether the Commission “regularly pursued its authority” and whether findings are sustained by law and substantial evidence. This framework matters because it situates how People’s validated a Commission interpretation of RESCTA, and how this case treats the statutory question as settled while bypassing fact-intensive equitable disputes.
B. Legal Reasoning
1) The statutory rule is supplied by People’s, not by re-litigating RESCTA here
The Court makes a clean doctrinal move: rather than re-deriving RESCTA’s meaning, it imports the controlling construction from People’s. Under that settled interpretation, “extending its service” in the Large Load exception refers to the lengthening of a supplier’s own retail distribution system—not reaching through third-party transmission facilities to penetrate another supplier’s certified territory.
2) Remedy turns on prospective-only application
Even after concluding OG&E’s method of service is not permitted by RESCTA as construed in People’s, the Court emphasizes the remedial limit: People’s applies prospectively only and “shall not apply to existing retail electric services and facilities which have already been established” under the Large Load exception. The Plant had been served since May 7, 2018. Therefore, an injunction would contradict the forward-looking nature of the new rule.
3) Mootness as a decisive procedural filter
The Commission denied OEC relief on equitable defenses (laches/estoppel/waiver). OEC attacked those findings on appeal, arguing it lacked timely knowledge of OG&E’s intended service method. The Supreme Court declines to decide those disputes because they cannot change the outcome: regardless of who “wins” the equities, no injunction can issue without violating People’s prospective-only limitation.
Notably, the Court also acknowledges a practical symmetry: the equitable considerations that motivated prospective-only application in People’s (avoiding hardship and wasteful duplication after substantial investment) substantially overlap with the equitable defenses on which OG&E prevailed before the Commission. Thus, although the Court labels the equitable-defense issues “moot,” it recognizes the Commission’s equities point in the same direction as People’s remedial limitation.
4) Concurring view
Justice Jett concurred in result, agreeing affirmance follows from People’s, but stating “the resolution of this case does not implicate the mootness doctrine.” The concurrence signals a methodological disagreement: one can affirm purely by applying People’s prospective-only remedial rule without characterizing the remaining issues as constitutionally or prudentially “moot.”
C. Impact
1) Prospective-only “no third-party transmission extension” rule becomes operational in future disputes
The combined effect of People’s and this decision is to lock in a forward-looking regulatory boundary: new large-load service into another supplier’s territory cannot be achieved by using third-party transmission lines as the mechanism of “extension.” The Commission and utilities now have a clear rule for structuring future large-load arrangements.
2) Existing large-load service arrangements are effectively grandfathered
This opinion underscores the stability function of prospective-only application: it avoids forced service discontinuation and prevents “wasteful duplication of facilities” that RESCTA was enacted to reduce. For customers and utilities with established investments, the practical effect is continuity of service despite a newly clarified statutory limitation.
3) Litigation strategy and timing: remedies may be constrained even when liability is clarified
The case illustrates a recurring regulatory-litigation dynamic: even where a statutory interpretation ultimately favors one side (OEC’s view that the conduct is not permitted), remedial limits (prospective-only application) may prevent disruptive relief. Parties challenging established service configurations may find that the most consequential remedy—an injunction—is unavailable once the Court chooses prospective application to balance reliance interests.
4) Administrative adjudication: narrowed role for equitable defenses in future similar cases
Because People’s now resolves the statutory issue, future Commission cases will likely turn less on equitable defenses and more on whether a challenged service is new (and therefore barred if it relies on third-party transmission tapping) or already established (and therefore not subject to shutdown under the prospective-only rule).
4. Complex Concepts Simplified
- Certified territory (RESCTA): A geographic area where one retail electric supplier has the exclusive right to serve customers, subject to narrow statutory exceptions.
- Large Load exception (“One Megawatt Exception”): A RESCTA exception allowing a supplier to serve a large facility (connected load ≥ 1,000 kW) in an unincorporated area, even if the facility is located in another supplier’s certified territory—subject to the limits the Court has now clarified.
- “Extending its service”: After People’s, this means extending the supplier’s own distribution system—not reaching into another territory by connecting through someone else’s transmission facilities.
- Prospective-only application: A judicial decision applies only going forward. Past arrangements are not undone, even if they would violate the newly announced interpretation.
- Mootness: Courts do not decide issues when their decision cannot produce any effective, real-world relief. Here, because service could not be enjoined under the prospective-only rule, disputes about equitable defenses could not change the outcome.
- Laches / estoppel / waiver: Equitable defenses that can bar relief when a party delays unreasonably (laches), induces reliance (estoppel), or relinquishes a known right (waiver). The Commission relied on these; the Supreme Court did not reach their merits because the remedy was unavailable regardless.
5. Conclusion
This decision operationalizes the Court’s newly settled RESCTA construction announced in Oklahoma Gas & Electric Co. v. Oklahoma Corp. Comm’n, 2025 OK 15, 565 P.3d 418 [People’s]: the Large Load exception does not authorize “extensions” of retail service accomplished by tapping third-party transmission facilities to reach into another supplier’s certified territory. Yet the Court simultaneously preserves established service relationships through prospective-only application, meaning OG&E’s existing service to Blue Mountain’s Plant remains in place.
The most significant takeaway is the Court’s dual message: the practice is unlawful going forward, but existing investments and service configurations will not be unwound through injunctive relief. As a result, the Court affirms the Commission’s order in its practical effect and declines to adjudicate equitable-defense disputes that cannot alter the remedy.
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