Aug 19 - Journal Record - Oklahoma City

Oklahoma Gas & Electric Co. did not get to build the Red Rock coal-fired plant as planned. But the company did spend a considerable amount of money on the planning process for the facility. OG&E may be able to recover that money - more than $7 million - from ratepayers.

The Oklahoma Corporation Commission is scheduled to meet Tuesday to consider an order that would allow OG&E to recover its costs related to the cancellation of the proposed Red Rock facility. Oklahoma City-based OG&E and Tulsa-based Public Service Company of Oklahoma were partners in a proposal to build the $1.8 billion, 950- megawatt, coal-fired power plant using new technology to reduce harmful emissions.

The commission denied the utilities' request to start charging customers for construction of the plant, finding that alternatives for meeting increased demand for electricity had not been adequately explored. Without commission approval, the two electricity companies opted to scrap their plans for the Red Rock facility. But by that point, the two utilities say they had already spent a collective $35 million on the project. PSO submitted a request to recoup $21 million spent on pre-engineering, design, equipment reservation and planning for the Red Rock project, and OG&E requested $14.7 million.

A preliminary draft of the order the commission will consider this week would allow OG&E to accrue a regulatory asset of $7.1 million resulting from the cancellation of the Red Rock plans, plus another $304,514 in fees and consulting services related to the project. The order, if approved, would also allow OG&E to recoup more than $33 million spent to repair storm damage. The Red Rock costs would be paid off over a 27-year period.

Originally published by Janice Francis-Smith.

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