Oklahoma Gas & Electric to purchase 2 power plants for $53M
OKLAHOMA CITY (AP) — Oklahoma’s largest electricity provider plans to spend $53 million to buy two power plants, which the utility says would save customers money and lower power plant emissions.
Oklahoma Gas & Electric announced a plan Thursday to acquire the Shady Point power plant near Poteau and the Oklahoma Cogeneration plant in Oklahoma City, the Journal Record reported. The Shady Point plant, owned by Virginia-based AES Corporation, is fueled with coal and natural gas. The natural gas-fired cogeneration plant is owned by Oklahoma Cogeneration LLC.
The acquisitions are pending approval from state regulators in Oklahoma and Arkansas.
OG&E officials said the deal would save customers up to $50 million a year and reduce coal use at Shady Point by more than 50 percent. It also would replace capacity supplied to OG&E under contracts that are set to expire next year.
OG&E notified the Shady Point plant in August that it wouldn’t be extending its contract, a move that would likely force the facility to close, according to the plant’s executives. Shuttering the plant would’ve eliminated a key utility source for homes and businesses in southeast Oklahoma and western Arkansas.
But the Shady Point plant, along with the cogeneration plant, responded to OG&E’s request for proposals to buy additional generation capacity. They were both selected.
OG&E will change the way managers operate the Shady Point plant to reduce its emissions, said Sean Trauschke, chairman, president and CEO of parent company OGE Energy Corp.
“With these acquisitions, we believe we’ve created a win-win solution on multiple fronts,” Trauschke said. “Our customers save tens of millions of dollars each year, power plant emissions continue to drop, Shady Point helps maintain grid stability as growth continues in that region, and a vital community avoids a crisis.”
Information from: The Journal Record, http://www.journalrecord.com