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Accounting specialist claims Corporation Commission audits of utility storm spending are not in accordance with state law

Accounting specialist claims Corporation Commission audits of utility storm spending are not in accordance with state law

Accountant David Greenwell Criticizes Oklahoma Corporation Commission’s Winter Storm Audit Compliance

Renowned Accountant Questions Oklahoma Corporation Commission’s Audit of Winter Storm Spending

In a recent development, David Greenwell, a highly respected accountant and former Oklahoma City council member, has raised concerns about the Oklahoma Corporation Commission’s audit of spending by utilities following the 2021 winter storm. Greenwell, who is a Certified Fraud Examiner and Certified in Financial Forensics, has pointed out that the audits conducted by the Commission do not meet the requirements of state law.

The controversy stems from the decision by utilities such as OG&E, ONG, PSO, and Summit to pass on nearly $3 billion in expenses incurred during the winter storm to ratepayers through securitization bonds. Commissioner Bob Anthony, who opposed the bond deals, estimates that the total cost to customers could reach $5 billion when factoring in principal, interest, issuance, and ongoing costs.

Greenwell’s analysis, detailed in a 41-page filing in OG&E’s rate case, highlights the lack of independent, licensed CPAs overseeing the audit activities as mandated by state law. He argues that the failure to conduct a proper audit may have significant implications on the Commission’s decision-making process regarding the securitization of costs.

Commissioner Anthony has been vocal in his criticism of the Commission’s audit activities, questioning the validity of the one-page audits sent to state officials and legislative leaders. He has described the audits as “ludicrous” and “farcically inadequate,” calling for greater transparency and accountability in the process.

Greenwell’s thorough examination of the situation has shed light on potential shortcomings in the Commission’s auditing practices. His expertise and dedication to ensuring compliance with state statutes have been commended by Commissioner Anthony, who believes that Greenwell’s intervention will ultimately benefit Oklahoma ratepayers.

As the controversy continues to unfold, it remains to be seen how the Oklahoma Corporation Commission will address the concerns raised by Greenwell and others regarding the audit of winter storm spending. The full 41-page filing by Greenwell can be accessed online for further details.

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