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Redbud Purchase Nears Last Hurdle

August 1, 2008

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.

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Copyright (c) 2008, The Oklahoman

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