Sep. 11--Three of the state's largest electric utilities now must consider new ways to meet their future energy needs after the Oklahoma Corporation Commission voted Monday to reject a proposed $1.87 billion coal-fired power plant near Red Rock.

During public deliberations, the three commissioners made it clear they will not support a plan by Oklahoma Gas and Electric Co., Public Service Co. of Oklahoma and the Oklahoma Municipal Power Authority to build a 950-megawatt, coal-fired power plant. he commissioners told staff to write up a formal order. A final vote is expected next week. Drastically different views were presented on what the vote means for consumers. OG&E said the decision will lead to higher electricity rates for most Oklahomans. "We're disappointed today for our customers," OG&E spokesman Brian Alford said. "We believe they are the ones who lost today.

We strongly believe that Red Rock was the best, least-cost option for our customers. Without that option, they will pay more fo their electricity in the future." Chesapeake Energy Corp. was one of the most ardent campaigners against the coal plant. Aubrey McClendon, the company's chairman and chief executive officer, said the decision will save consumers money in the long run. "This is a win for Oklahoma ratepayers," McClendon said. "Coal is cheap today, but we believe it won't always be cheap. It's only logical that there will be a day when something that's as detrimental to the environment and to public health is priced in different way.

Coal has done wonderful things for our national economy in the 19th and 20th centuries, but this is the 21st century. Oklahoma needs to show leadership here. It is a great first step from these courageous Oklahoma Corporation commissione s to say no to what we think was an ill-conceived idea for the 21st century." The regulators' decision also drew praise from Attorney General Drew Edmondson, who said a broader discussion is needed about what fuel should be used for electricity generation in the state. "We believe OG&E, PSO and the Oklahoma Municipal Power Authority will need additional generation capacity at some point in the future.

Our experts are convinced that they do not need it today," Edmondson said in a statement. "This vote will give us addi ional time to assess the relative merits of fuel choices. When these issues are presented in the future, we will be in a better position to evaluate anticipated federal actions on emissions and their added costs to the proposal." Commissioners Jim Roth and Jeff Cloud endorsed strong language denying OG&E and PSO's request for the power plant. Commissioner Bob Anthony agreed the commission should not bless the proposed power plant, but he preferred language more open-ended than t at chosen by his colleagues.

Much of the months-long hearings centered on the competitive bidding process PSO used in determining the best way to meet its need for power generation. Several interveners in the case objected to the fact that two existing, natural gas-fired independen power plants were not fully compared with the Red Rock plant. The natural gas facilities were excluded early in the bidding process because they did not meet credit requirements established by PSO. The commissioners also said Monday that alternative power sources such as nuclear and wind turbines should have been more closely considered. Roth said he was unconvinced that "reasonable alternatives" such as demand-reduction programs, renewable power options or existing generations facilities had been considered as required by state law.

"Testimony on the record was detailed, but so narrow as to set up a fight between only two alternatives: coal and natural gas," Roth said. "More alternatives should have been considered. Wind power was seemingly ignored." All three commissioners agreed PSO would need to buy or build 450 megawatts of new baseload power generation by 2012. They did not agree on how much power OG&E would need. Anthony and Cloud said the state's largest electric utility likely would need at east 300 megawatts of new power by 2012. Roth was unconvinced about how much future generation the utility needs. The commissioners said they would invite the utilities to draw up new plans and return to the commission.

The case was the first use of a 2005 law that gave the commission authority to give prior approval to utility-spending projects. Previously, utilities generally moved forward with their construction or purchase plans and asked the commission afterward f r approval to raise customer rates to pay for the project. Despite the outcome, OG&E said it will use the preapproval process again. OG&E, PSO and other supporters can appeal the final ruling to the Oklahoma Supreme Court. Alford said OG&E does not expect to file an appeal.