OG&E to Build Major Transmission Tie to Kansas
OKLAHOMA CITY, Sept. 14 /PRNewswire-FirstCall/ — OG&E Electric Services announced today it plans to construct the Oklahoma portion of a new 345kV transmission line from north-central Oklahoma to a substation near Wichita, Kan., as part of the expanded Regional Planning Process under the direction of the Southwest Power Pool (SPP).
The approximately 40-mile segment to be built by OG&E, along with another 40-mile segment of line to be built by Westar Energy of Topeka, Kan., will provide additional capability to move more power on the regional transmission grid, particularly that part of the grid serving Kansas and Oklahoma.
“This line marks a continuation of OG&E’s 105-year tradition of building electric infrastructure to meet growing energy demand,” said Steven E. Moore, chairman and CEO of OGE Energy Corp. , parent of OG&E.
The OG&E-Westar project has been authorized by the SPP and OG&E expects to begin the construction process promptly. The project will qualify for ‘Base-Plan’ funding status, which will spread a portion of the cost of the project to all users in the SPP.
“This new line is truly a ‘win-win’ for everyone,” said Mel Perkins, vice president of Power Delivery for OG&E. “It will improve the reliability of the system and allow for cost-effective power transfers, with the cost shared by all users of the system within the SPP”.
OG&E plans to work with property owners to find the best route for the new line. The company held ‘Town Hall’ meetings in August to solicit public input. OG&E expects to complete construction of the line, at a cost estimated at $40 million, by late 2010.
OG&E serves more than 758,000 customers in a service territory spanning 30,000 square miles in Oklahoma and western Arkansas. OGE Energy also is the parent of Enogex Inc., a natural gas pipeline business with principal operations in Oklahoma.
Some of the matters discussed on this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “objective”, “plan”, “possible”, “potential”, “project” and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; OGE Energy Corp.’s (collectively, with its subsidiaries, the “Company”) ability and the ability of its subsidiaries to obtain financing on favorable terms; prices and availability of electricity, coal, natural gas and natural gas liquids, each on a stand-alone basis and in relation to each other; business conditions in the energy industry; competitive factors including the extent and timing of the entry of additional competition in the markets served by the Company; unusual weather; availability and prices of raw materials for current and future construction projects; federal or state legislation and regulatory decisions (including the approval of regulatory filings with the Oklahoma Corporation Commission or the Arkansas Public Service Commission related to its proposed construction of a new power plant and a related lawsuit) and initiatives that affect cost and investment recovery, have an impact on rate structures or affect the speed and degree to which competition enters the Company’s markets; environmental laws and regulations that may impact the Company’s operations; changes in accounting standards, rules or guidelines; the discontinuance of regulated accounting principles under Financial Accounting Standards Board Statement of Financial Accounting Standard No. 71, “Accounting for the Effects of Certain Types of Regulation”; creditworthiness of suppliers, customers and other contractual parties; the higher degree of risk associated with the Company’s nonregulated business compared with the Company’s regulated utility business; the impact of the recently announced initial public offering of limited partner interests of OGE Enogex Partners L.P.; and other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission.
OGE Energy
CONTACT: Brian Alford, +1-405-553-3284, or Financial Contact, ToddTidwell, +1-405-553-3966, both of OGE Energy
Web site: http://www.oge.com/
