OKLAHOMA CITY — Back and forth they went, the Oklahoma Corporation Commission and OG&E.
Finally, the two parties settled things, and it seems to be final.
WATCH: Corporation Commission, OG&E finally settle matters
Here’s the long and short of it.
OG&E wants to build more infrastructure on Horseshoe Lake, to increase capacity.
The catch: OG&E wanted a funding boost, through a special provision in Oklahoma law, called Construction While in Progress (CWIP). The plan was to raise rates, to more quickly pay down the construction, claiming customers would save $176 million in interest.
Commissioner Todd Hiett was not convinced.
“I can’t imagine. The math is so absolutely clear that CWIP treatment is a detriment to rate payers. Where they … if they, enjoy any savings at all, it’s going to be 25 years and beyond, before they get that savings. Those customers may not be customers, they may not be alive. These businesses may not be alive,” Hiett said during a commission meeting.
No permission for the provision. No rate hikes, though, the project itself is moving forward, despite a request from AAPR and the Oklahoma Industrial Energy Consumers to reopen the case.
“We’ve got enough information that we don’t want to rehash any of this anymore,” Commissioner Brian Bingman said during a commission meeting.
Hiett, for one, is opposed to the project on the whole, as it stands.
“Horsehoe Lake was not the lowest cost alternative that OG&E had at its disposal.
LOOKING BACK>>> Derek Rogers, of Ryan Mfg., originally alerted KJRH to the story
Statement from OG&E Vice President of Marketing and Communications Christi Woodworth
“We are pleased the Oklahoma Corporation Commission affirmed its order from November 13. While every party has the right to request a reconsideration, in this case, all commissioners recognized the need for these projects and addressed concerns by OIEC and AARP in their original order.”
“OG&E looks forward to bringing this new generation that will provide reliable electricity at low costs to all of our customers. These projects do not fully meet the future capacity needs projected in our 2025 Integrated Resource Plan, and we continue to negotiate additional projects to meet those needs.”
“OG&E customers depend on us to provide them with reliable electricity at low costs. We will continue to prioritize and balance reliability and affordability to ensure our customers can live their lives and run their businesses uninterrupted.”
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