Judge delays PSO lawsuit hearing

Public Service Company’s lawsuit against Rogers County officials over their rezoning denial for part of the company’s recently approved $1.2 billion in energy expansion projects won’t be heard Tuesday as originally scheduled.

It means another delay for the utility company in efforts to expand its ability to produce more electricity at its Oologah power plant.

The hearing before Rogers County District Judge Stephen R. Pazzo has been continued until July 20 at 1:30 p.m..

“On Joint Motion of counsel for Plaintiff and Defendants, and for good cause shown,
IT IS ORDERED that the hearing on Defendants’ Motion to Dismiss in this matter set for
May 19, 2026, at 9:30 a.m. is hereby continued to July 20, 2026, at 1:30 p.m.
DATED this 5th day of May 2026,” stated his recent order.

The lawsuits filed by PSO after the Rogers County Board of Adjustment denied zoning for the utility’s planned addition of 450 MW of natural gas generation to the Units 5 and 6 at the existing plant near Oolagah are now in the hands of lawyers, both for the county and for the utility.

Zoning Dispute Centers on $539 Million Project

PSO contends the Board of County Commissioners and the Board of Adjustment “lack jurisdiction over the Northeastern Station property” where they refused to grant a Special Exception for PSO’s proposed $539.8 million project on the property in November 2025.

PSO’s second lawsuit, filed in January, was met earlier in March with the County asking a judge to dismiss the lawsuits. PSO responded arguing that the lawsuits should be allowed to proceed.

“The actions of the BOA denying permission for PSO’s proposed use of the Subject Property are arbitrary and capricious and result in substantial interference with the use and enjoyment of the Subject Property, or amount to an exercise of dominion and control over the Subject Property, either of which is a regulatory taking of PSO’s property in violation of the Fifth and Fourteenth Amendments to the Constitution of the United States and Article 2, Section 24 of the Constitution of the State of Oklahoma,” argued PSO in fighting the dismissal motion of Rogers County.

In other words, PSO contends it cannot develop the property permitted in the Zoning Ordinance adopted by the County Commissioners and in effect is a “taking of PSO’s property.” The utility says if that’s the case, it wants to be compensated in the amount of the project—nearly $540 million.

PSO’s application for the projects was approved last week by the Oklahoma Corporation Commission. However, the application for improvements to the Northeast Power plant in Oologah, considered a critical element of the $1.2, were approved with the proviso that the legal dispute was resolved.

“Because the projects cannot proceed to construction absent a favorable zoning determination, PSO shall not recover any CWIP associated with NE 5 & 6 until a final non-appealable order is issued by the District Court granting the necessary zoning approval,” stated the commission in its final order issued last week.

CWIP or Construction Work in Progress is the financing method allowed under a new state law that PSO sought so it could begin immediately charging ratepayers as construction started.