OG&E Seeks Rate Increase And Additional Wind Power


Oklahoma City-based OG&E, a subsidiary of OGE Energy Corp., has filed for a general rate increase of approximately $26 million with the Arkansas Public Service Commission.

In its filing, OG&E says it is seeking recovery of costs for investments, including a new power plant and improvements in its system of power lines, substations and related equipment to ensure that the company can reliably meet growing customer demand for electricity. The utility also announced plans to acquire additional wind power.

If OG&E's new proposal is approved, it would be the first general rate increase in 25 years for residential customers. The average residential customer's electric bill would increase by about $12 per month, according to the utility.

The largest component of OG&E's rate request is the Redbud power plant, a modern, natural-gas-fired facility near Luther, Okla. OG&E expects to complete its acquisition of the plant later this year at a cost of at least 25% less than construction of a new plant with similar capabilities. According to the utility, Redbud can quickly ramp its output up and down, a complement to OG&E's commitment to add additional wind power to its generating system.

OG&E now has 170 MW of wind generation capacity and is actively pursuing plans to add an additional 600 MW of wind power to its generating fleet.

SOURCE: OGE Energy Corp.

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