OKLAHOMA CITY — Oklahoma Attorney General Gentner Drummond on Wednesday, April 10, 2024, filed lawsuits against several companies alleging they inflated natural gas prices during Winter Storm Uri in 2021.
“I believe the level of fraud perpetrated on Oklahomans during Winter Storm Uri is both staggering and unconscionable,” Drummond said. “While many companies conducted themselves above board during that trying time, our analysis indicates that some bad actors reaped billions of dollars in ill-gotten gains. It is important that we do everything in our power to hold bad actors accountable for their actions.”
Additional lawsuits could be forthcoming, he said.
Two suits were filed in Osage County seeking damages and attorney fees.
Enable Midstream Partners, Enable Oklahoma Intrastate Transmission, Enable Gas Transmission, Enable Energy Resources and Symmetry Energy Solutions were named as defendants.
The companies counted on higher demand with the storm and schemed to artificially reduce supply, according to the suit.
“They knew that it would bring sustained below freezing temperatures, and that it would increase demand for natural gas,” according to the suits. “Armed with this knowledge, Defendants used that time to prepare, but not in the way that was rightfully expected from them.”
Defendants spent weeks before the storm in Oklahoma taking deliberate steps to reduce the availability of natural gas, the suits allege.
The goal was to drive natural gas prices and profits exponentially higher, to the detriment of Grand River Dam Authority, the state’s largest public power utility, and Oklahomans, according to the suits.
Public utilities reported a nearly 40,000% spike in natural gas prices during the two-week winter event. Those generated more than $4.5 billion in additional energy costs, officials said.
In an effort to mitigate the financial impact on consumers, the state sold bonds to cover the costs, with consumers paying higher rates over a longer period to retire the bonds. Consumers would have had to pay much more immediately to cover the costs without the securitization process.
GRDA did not undergo securitization and is not regulated by the Oklahoma Corporation Commission. Oklahoma Natural Gas, PSO and OG&E went through securitization.
The defendant companies could not immediately be reached for comment.
Outside attorneys hired by Drummond will be able to retain a portion of what is collected should the suits be successful.
Oklahoma Corporation Commission Chairman Todd Hiett said he and others encouraged Drummond to investigate the high prices.
“We certainly hope he will find success in clawing back some of those dollars for the ratepayers,” Hiett said.
Sean Voskuhl, AARP Oklahoma state director, welcomed news of the lawsuits.
“These companies who reaped billions of dollars on the backs of hard-working Oklahomans during Winter Storm Uri must be held accountable,” Voskuhl said. “Frustrated utility customers have been demanding to know why they are paying for a ‘once-in-a-generation’ storm for decades.”
He said the recovered funds should be returned to customers.
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