Oklahoma Gas and Electric Company (OG&E) filed an application with the Oklahoma Corporation Commission (OCC) seeking pre-approval for three significant generation capacity projects selected from its 2024 All Source Request for Proposals (RFP). These projects are crucial for addressing the substantial capacity needs identified in OG&E's 2024 and 2025 Integrated Resource Plans, which project a need of 1,349 MW by 2029 and 1,647 MW by 2030.
The proposed projects include a 20-year, 95 MW Capacity Purchase Agreement (CPA) with Plus Power for the Black Kettle Battery Energy Storage System, expected operational by June 1, 2027. Additionally, a five-year CPA with Tenaska for 300 MW (increasing to 450 MW) from the existing Kiamichi natural gas plant, effective June 1, 2029. The third project involves the construction of Horseshoe Lake Units 13 & 14, two new natural gas combustion turbines totaling 448 MW, with an in-service date in 2029, for which OG&E has secured turbine pricing.
OG&E is also requesting modifications to its Generation Capacity Rider (GCR) to allow for Construction Work in Progress (CWIP) recovery for Horseshoe Lake Units 13 & 14, and cost recovery for the CPAs. CWIP recovery for Horseshoe Lake Units 13 & 14 is projected to save customers approximately $190.5 million over the project's lifetime compared to traditional Allowance for Funds Used During Construction (AFUDC) recovery. The company is experiencing unprecedented load growth, including requests from data centers and cryptocurrency operations, underscoring the urgency of these capacity additions.
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