The utility company seeks to build two new natural gas turbines at its Horseshoe Lake power plant in eastern Oklahoma, totaling about $506 million. It is also pursuing two capacity purchase agreements with an energy storage facility and a power plant in Kiowa.
The company plans to add close to 60 cents to monthly bills starting in 2026, increasing the amount to more than $4 by 2031, should its application be approved.
OG&E wants to use a new law requiring the Corporation Commission to allow utilities to charge customers for new and expanded natural gas construction before the projects are complete. The commission had previously voiced opposition to the measure before its passage, saying it would lead to higher costs for customers.
Representatives from the company said beginning the charges ahead of the project’s completion would save customers $176 million in interest over the life of the project.
“We appreciated the opportunity during the hearing to reiterate that this overall project is designed to meet capacity requirements for OG&E to deliver reliable electricity to 909,000 customers every day,” Ken Miller, vice president of public and regulatory affairs, said in an email.
But residents with mounting electricity bills shared concerns over the latest rate hike proposal during an Oct. 8 meeting.
Stephanie Burdine from Yukon said the increase may not sound expensive relative to some larger costs, “but $5 a month to older people or a single mother with kids, that does amount to something.”
“And I hope you all will consider the public, the citizens, and not the corporations,” Burdine added.
Derek Rogers from Haskell said his small manufacturing business is cutting employee hours and shifting its operating schedule to make up for high utility bills.
“Like many small businesses and families across our state, we are struggling under rising electricity costs and simply cannot withstand another increase.”
According to an OCC spokesperson, the commissioners are expected to issue a final order in the case within the next couple of weeks.
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