Public Service Company of Oklahoma faces new court hearing over Oologah power plant zoning denial

Public Service Company of Oklahoma (PSO) is embroiled in a legal battle concerning its proposed $540 million power expansion project at its Oologah plant in Rogers County. Despite potential approval from Oklahoma Corporation Commissioners for rate increases to fund the project, PSO faces opposition from local authorities, which has led to a significant hurdle. The dispute arose after the Rogers County Board of Adjustment denied PSO's rezoning request for the project, a decision subsequently upheld by the County Commissioners. In response, PSO filed two lawsuits in Rogers County District Court: one in December 2025 (CV-2025-224) and another in January 2026 (CJ-2026-26), targeting both the Commissioners and the Board of Adjustment. A hearing has been set for May 19 to address the case. The project entails converting a coal unit at the Oologah power plant to natural gas, alongside the addition of two gas turbines and a battery storage system. PSO argues that, as a "regulated utility," it is exempt from needing county zoning approval for facilities used for electricity generation on property it has utilized since 1960. Conversely, the Board of Adjustment contends that PSO is attempting to circumvent local zoning laws through prohibited "claim-splitting." During a recent hearing on PSO's $1.2 billion power expansion request, Thomas Schroedter, attorney for the Oklahoma Industrial Energy Consumers, cautioned Corporation Commissioners about the unresolved zoning issue, recommending that any approval be conditioned on PSO securing zoning from the District Court of Rogers County. In its Corporation Commission filing (2025-000064), PSO emphasized the urgent need to proceed with construction due to projected load growth within its service territory. The utility warned that without acquiring additional SPP accredited capacity resources, its summer capacity position would be deficient by 10 MW in 2027, 470 MW in 2028, and 1,766 MW in 2029, stressing the necessity of the project to meet future demands.