Oklahoma's Winter Storm Natural Gas Price Fight Heads Towards Trial

Oklahoma's winter storm natural gas price dispute is heading towards trial after two recent legal developments. In February 2021, Winter Storm Uri caused a massive spike in natural gas prices at regional trading hubs used by Oklahoma utilities and other customers. Prices ballooned to over $1,200 per thousand cubic feet from less than $3 in the weeks before the storm.

Customers of Oklahoma's largest regulated utilities are paying back billions in fuel costs incurred during the storm, plus interest on bonds sold to cover those costs. Most residential customers will pay between $5 and $15 per month extra for two decades.

Last week, regulators at the Federal Energy Regulatory Commission declined to weigh in on whether the natural gas sold for electricity and heating during the storm stayed within Oklahoma or crossed state lines. Then a district judge in Osage County ruled in favor of Oklahoma Attorney General Gentner Drummond, who alleged NextEra Energy Marketing LLC and others engaged in market manipulation and price gouging.

The ruling means that NextEra is likely to face trial, where the state will seek damages. Any judgments or settlements from the winter storm natural gas lawsuits would go towards the amounts outstanding in the ratepayer-backed storm bonds, minus outside attorney fees and expenses.