Luther OGE Franchise Election 2025: What You Need to Know

On Tuesday, October 14, 2025, Luther voters who live within town limits will decide on a proposition granting Oklahoma Gas & Electric Company (OG&E) another 25-year franchise to operate within the town. This vote, rooted in Article 18, Section 5(a) of the Oklahoma Constitution, is about approving OG&E’s right to use Luther’s streets, alleys, and public grounds for its electric infrastructure—not about voters’ voice in choosing a new provider.

What’s on the Ballot?

The proposition, tied to Ordinance No. 2025-02 (passed by Luther’s Board of Trustees on August 12, 2025), allows OG&E to:

• Build, maintain, and operate poles, wires, and other equipment in public rights-of-way.
• Produce, transmit, and distribute electricity for all purposes to Luther’s residents, businesses, and the town itself.
• Pay Luther compensation, primarily a 3% franchise fee on electricity sales, for 25 years.

Key Point: This is a non-exclusive franchise, meaning it permits OG&E to operate but doesn’t explicitly block other providers (though state law makes competition unlikely—more on that below).

PROPOSITION Shall a franchise be granted to the Oklahoma Gas and Electric Company, a corporation, of the Town of Luther, Oklahoma, giving it the right to produce, transmit and distribute electricity within the Town and to sell electricity therein for all purposes for which it may be used, to the Town, its inhabitants and the public generally, and the right to construct, maintain and operate a system of poles, wires, conduits and other facilities and equipment in, upon, across, under and over the streets, alleys, public grounds or right-of-way in the Town for such purpose, for a period of twenty-five (25) years, providing compensation to the Town, all in accordance with the provisions of Ordinance No. 2025-02 , passed and approved by the Board of Trustees of the Town of Luther, Oklahoma, on the 12th day of August, 2025, be approved? 

wording on the ballot on october 14, 2025 for voters registered within luther town limits.

Why Isn’t This About Choosing a Provider?

Despite wording like “giving it the right to produce, transmit, and distribute electricity,” this election doesn’t let voters pick a new utility. Oklahoma’s Retail Electric Supplier Certified Territory Act (17 O.S. §§ 158.21 et seq.) divides the state into exclusive territories, with Luther firmly in OG&E’s zone, as certified by the Oklahoma Corporation Commission (OCC). This law ensures one provider per area to avoid redundant infrastructure, and changing providers would require a rare OCC proceeding, not a local vote. The franchise is about access and compensation, not who delivers your power.

OG&E’s Scale: A Public Company With Shareholders

As a subsidiary of OGE Energy Corp., a publicly traded company with a market capitalization of approximately $9.2 billion as of October 2025, OG&E operates within a structure that offers returns for investors. OGE Energy pays annual dividends to shareholders, distributing quarterly payments such as the $0.42125 per share declared in February 2025. Ownership is held by institutional investors, including major players such as BlackRock, Inc. (which has approximately 13% of the shares), Vanguard Group Inc., and others, including State Street Corp. and Boston Partners, as well as mutual funds and other shareholders. With over 2,400 employees company-wide, OGE Energy supports a workforce that includes engineers, linemen, and support staff, with its CEO receiving around $10 million in total compensation in 2024.

What Does Luther Get?

The attorney for the Town of Luther negotiated the franchise agreement before the Board of Trustees ratified it through a resolution for this election. The new terms are similar to the currentl:

• Franchise Fee: A 3% fee on electricity sales, generating about $36,000 annually for Luther’s budget.
• Free Electricity: Power for town buildings, saving municipal costs.
• Property Taxes: Contributions to local schools via taxes on OG&E’s infrastructure.
• Community Involvement: OGE provides teacher grants, student scholarships and internships, and supports community events, such as the Luther Pecan Festival with a $500 sponsorship in 2025. 

What Happens If Voters Say No?

Norman voters have rejected the franchise agreement twice, while Meeker and Wellston voters approved theirs (2022 and 2023). Norman’s rejections (61% no in 2023, 50.04% no in 2024) have led to an ongoing month-to-month agreement with OG&E, maintaining service, fees, and power without disruption, as it’s legally bound to serve its territory. In Luther, a “no” vote would likely shift to similar short-term terms, re-negotiation, and another election.

On Thursday, Luther Mayor Terry Arps released the following statement:

“The election to renew the existing franchise agreement between Oklahoma Gas and Electric (OGE) and the Town of Luther is next Tuesday, the 14th of October, 2025. OGE is the primary electrical provider for the town and a partner in ensuring both convenience and safety to Luther residents. As always, I encourage you to exercise your franchise and vote on issues that come before the people.”

Vote Tuesday

This vote, required by the Oklahoma Constitution (Article 18, Section 5(a)), balances Luther’s need for reliable electricity and budget support against flexibility for future terms for 25 years. State law ensures OGE is the provider within town limits.

The polls will be open from 7 am – 7 pm, on Tuesday, October 14, 2025. Check the state voter portal for information on your precinct.

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Sidebar: Why Do Nearby Areas Have Co-op Power?

• State’s Playbook: Oklahoma’s 1971 law (17 O.S. §§ 158.21 et seq.) assigns one provider per area to avoid double-wire lines, enforced by the Oklahoma Corporation Commission (OCC).
• Back in the Day: In the 1930s, OG&E skipped rural spots—too costly. The 1936 Rural Electrification Act funded cooperatives like Central Rural Electric Cooperative (CREC, 1938) to electrify farms and rural areas. The 1971 law locked in those boundaries.
• Who Powers Who?:
  • Arcadia: OG&E runs the town; CREC lights up rural edges (old co-op lines).
  • Luther: OG&E’s got the whole town; CREC sticks to Logan County’s outskirts south to Luther’s town limits in Oklahoma County.
  • Chandler: Canadian Valley Electric Co-op (CVEC) powers the town; CREC hits rural Lincoln County; OG&E’s close but not center.
• No overlap—boundaries are strict. Switching is tough (needs OCC approval). Co-ops often charge less (and have members/customers, not shareholders).