OG&E receive approval to buy two power plants in Oklahoma

15 May 2019 (Last Updated May 15th, 2019 15:28)

OG&E, a subsidiary of OGE Energy, has received regulatory approval to acquire two power plants in Oklahoma, US.

OGE Energy subsidiary OG&E has received regulatory approval to acquire two power plants in Oklahoma, US.

The Oklahoma Corporation Commission (OCC) has given approval for OG&E’s application that was submitted in December 2018. OG&E is expected to pay approximately $53m for the two plants.

The two plants are the AES Shady Point plant near Poteau and the Oklahoma Cogeneration facility in Oklahoma City.

Shady Point is a coal-fired power plant with a capacity to generate 360MW whilst the 146MW Oklahoma Cogeneration is a natural gas-fired combined-cycle plant. The two plants have served OG&E customers for several decades under federally mandated power purchase agreements.

OG&E spokesman Brian Alford said: “These acquisitions create a win-win on multiple fronts. Our customers will save tens of millions of dollars each year by eliminating costly, federally mandated agreements.

“The Shady Point acquisition will help maintain grid stability as growth continues in eastern Oklahoma and western Arkansas. It also ensures many jobs will be preserved in an economically challenged region.

“The Oklahoma Cogen acquisition will help ensure the facility’s natural-gas-fired capacity will continue to support reliability and resiliency in the ever-growing Oklahoma City-metro area. And, we’ll see a further reduction in power plant air emissions as a result of the acquisitions.”

Alford added that the OG&E power plant air emissions have reduced from 2005 levels. Sulphur dioxide emissions significantly reduced by nearly 90%, nitrogen oxide by approximately 75% and carbon dioxide by around 40%.

“OG&E is expected to pay approximately $53m for the two plants.”

The company noted it intends to further reduce carbon emissions to 50% below 2005 levels by 2030.

Alford said: “With our demonstrated emissions reductions and rates that are 31% below the national average, our performance is industry-leading. As we integrate Shady Point into our fleet, we will use our expertise to enhance the operation of this facility to further reduce emissions.”