OG&E Receives Approval to Recover Costs of Acquiring Redbud Power Plant
Oklahoma Gas and Electric has received an approval from the Oklahoma Corporation Commission of the company’s proposal to recover the costs of acquiring and operating the 1,230MW Redbud power plant near Luther, US.
The Oklahoma Gas and Electric Company (OG&E) expects to complete its acquisition of the plant by October 1, 2008.
OG&E will acquire a 51% interest in the Redbud plant for a purchase price of about $434.5 million and will operate the plant on behalf of its co-owners, the Grand River Dam Authority with a 36% stake and the Oklahoma Municipal Power Authority with 13% interest.
Howard Motley, vice president of regulatory affairs for OG&E, said: “We are pleased to have the commission’s approval as well as the support of the commission staff, our customers and the Attorney General’s office. This plant will help us continue delivering a reliable supply of power and also provides long-term cost savings to our customers.”