October 2, 2008
OG&E, Grand River Dam Authority, Okla. Municipal Power Authority Complete Redbud Plant Purchase
OG&E, the Grand River Dam Authority and the Oklahoma Municipal Power Authority have completed the $852 million purchase of the Redbud power plant near Luther.
OG&E acquired a 51-percent interest in the 1,230-megawatt Redbud plant for $434.5 million and will operate the plant. GRDA purchased a 36-percent stake and OMPA bought 13 percent.
Redbud, a combined-cycle plant in service since 2004, operates more efficiently than some of the older units in the OG&E generating fleet, according to the subsidiary of OGE Energy Corp. of Oklahoma City.
With Redbud, OG&E will have more than 6,800 megawatts of generating capacity from nine power plants, fueled by natural gas and western coal. OG&E has 170 megawatts of capacity from wind generation.
OG&E has plans to increase its wind power capability to 770 megawatts in the next four to five years.
According to GRDA Chief Executive Officer Kevin Easley, the Redbud acquisition adds approximately 435 megawatts to the authority's existing generation capacity.
GRDA is paying $306 million for its share.
"With Redbud, GRDA adds new generating capability and greater generation diversity," Easley said. "That means we can be less dependent on the open market purchases at times of extremely high demand or plant outages."
Originally published by Journal Record Staff.
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