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OG&E Gas Transportation & Storage Cost Recovery Approved; Oklahoma Corporation Commission Orders $41.9 Million Annually

Posted on: Friday, 15 July 2005, 15:01 CDT

OKLAHOMA CITY, July 15 /PRNewswire-FirstCall/ -- OG&E Electric Services announced today that the Oklahoma Corporation Commission approved an order granting the utility annual recovery of $41.9 million for natural gas transportation and storage services provided to certain of its generating stations under a contract with its affiliate, Enogex Inc.

In a 3-0 vote, the Commissioners approved, with one exception, the recovery recommended by the Administrative Law Judge in the case in October 2004. The Commission did not approve the judge's recommendation that would have enabled OG&E to recover, in addition to $41.9 million annually, the annual amount that Enogex bills OG&E for the cost of fuel used in providing natural gas transportation and storage services to OG&E.

The Commission's order will require OG&E to refund the difference between the $46.8 million collected from customers in the past for gas transportation and storage services and the $41.9 million authorized by the Commission that relates to Oklahoma customers. The company estimates this refund at $8.5 million to 10 million, and does not believe this amount will be material to its financial results based on previously-established reserves. A filing will be made to determine the exact amount of the refund, which is to be made in the form of credits on customers' future electric bills under the Commission's order.

"We are pleased to have an order in this case, so we can move forward with more certainty in the operation of our business," said Steven E. Moore, chairman, president and CEO of OGE Energy Corp. , parent company of OG&E and of Enogex Inc., the natural gas pipeline company that serves most of OG&E's gas-fired power plants. "We had hoped the Commission would place a higher value on the service our electric ratepayers receive from OG&E's contract with Enogex, which enables us to maximize the utilization of our coal-fired plants which provide significant fuel savings for our customers. But having a unanimous Commission order is a positive outcome."

OG&E had requested a $46.8 million annual recovery, plus Enogex's fuel costs. The natural gas transportation and storage case is in no way related to OG&E's request for changes in its electric rates which was filed May 20.

OG&E serves approximately 735,000 customers in a service area spanning 30,000 square miles in Oklahoma and western Arkansas. Enogex has about 9,000 miles of pipe with principal operations in Oklahoma and Arkansas.

OGE Energy Corp.

CONTACT: Brian Alford, +1-405-553-3187, or financial, Todd Tidwell,+1-405-553-3966, both of OGE Energy Corp.

Web site: http://www.oge.com/

Source: PRNewswire-FirstCall

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