August 1, 2008
Redbud Purchase Nears Last Hurdle
By Jack Money, The Oklahoman
Aug. 1--Plans by Oklahoma Gas and Electric Co. and its partners to buy the Redbud power plant near Luther are on their way to Oklahoma's Corporation Commission for a final hearing, utility officials said Thursday.
The Grand River Dam Authority and the Oklahoma Municipal Power Authority are joining with OG&E to buy the plant for $852 million.
State-regulated OG&E, which will own a 51 percent interest in the plant, is seeking Corporation Commission approval to recover from ratepayers its $434.5 million share of buying the plant.
The two authorities and Redbud Energy, a subsidiary of Columbia, Md., Kelson Holdings and current owner of the plant, have signed a joint stipulation and settlement agreement supporting OG&E's request.
Only AES Shady Point, an independent power producer that sells its electricity from a coal-fired plant in LeFlore County, refused to sign the agreement.
AES Shady Point also has a request before the commission, state officials said Thursday. It is asking the commission to authorize OG&E to recover costs from customers for improvements Shady Point might need to make to its plant to meet federal clean air standards.
An attorney for the company did not respond to a request for comment about its opposition to OG&E's plans to buy Redbud.
State officials said a hearing will be scheduled before the Corporation Commission on the joint stipulation and settlement agreement later this year.
To see more of The Oklahoman, or to subscribe to the newspaper, go to http://www.newsok.com.
Copyright (c) 2008, The Oklahoman
Distributed by McClatchy-Tribune Information Services.
For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.