OG&E Signs Agreement to Purchase Redbud Power Plant

OGE Energy has announced that its regulated utility subsidiary, Oklahoma Gas and Electric Company, has signed definitive agreements with Kelson Holdings, the Grand River Dam Authority and the Oklahoma Municipal Power Authority to purchase the natural gas-fired Redbud power plant near Luther, Oklahoma.

Kelson Holdings, a Maryland-based holding company, agreed to sell the Redbud power plant for $852 million following a competitive sale process.

Oklahoma Gas and Electric Company (OG&E) will acquire a 51% interest in the Redbud facility while Grand River Dam Authority will have a 36% stake and the Oklahoma Municipal Power Authority accounting for the remaining 13%. OG&E will operate the plant, which has four generating units producing more than 300MW each.

Pete Delaney, OGE Energy’s chairman and CEO, said: “Redbud is a new, efficient combined-cycle, gas-fired plant connected to the OG&E transmission system near the Oklahoma City area. Our purchase price is below the cost of constructing a new, gas-fired facility, locking in savings for our customers for years to come.”