News from the Oklahoma Corporation Commission
Phone: (405)
521-4180, FAX: (405) 522-1623, m.skinner@occmail.occ.state.ok.us
Move will ensure reliable electric service and boost southwest
Oklahoma’s economy
(Oklahoma City)
The Oklahoma Corporation Commission today approved a plan that paves the
way for a cogeneration plant in Lawton. Under the plan, American Electric
Power-Public Service Company of Oklahoma (AEP-PSO) will meet some of its
electric demand by buying power from a 300 megawatt, natural gas-fired plant
that will be located in Lawton’s industrial park. The facility will also
produce steam that will be sold to nearby industrial plants. The plant is
expected to be on-line in less than five years.
Commission
Chairman Denise Bode said there is no doubt there is a need for more power for
the area, and a concurrent need to protect ratepayers.
“We
have a mandate under the Oklahoma constitution to ensure Oklahomans receive
affordable, reliable service from the utilities we regulate,” Bode said. “The Commission is committed to ensuring
brownouts and other electric service interruptions like those that have plagued
such states as California do not happen here. The Lawton area is growing, and
that has put a strain on the service AEP-PSO provides in the area. AEP-PSO has turned to outside sources to
meet some its power demand. At one point this year, 31 percent of its power was
purchased from other sources. This
dependence on what is a very volatile marketplace puts ratepayers at risk, as
prices could skyrocket suddenly. Ratepayers could find themselves in the same position
as natural-gas customers two years ago, when prices for the fuel skyrocketed.”
Chairman
Bode points to estimates that show ratepayers could save approximately 700
million dollars during the term of the plan.
Commissioner
Jeff Cloud said today’s decision was the result of a process that involved
careful analysis and a detailed review.
“The
issues raised in this case were complex,” said Cloud. “But after a thorough review and careful consideration of the
testimony and evidence, I am confident that this order will serve the long-term
best interests of AEP/PSO and its customers and benefit the overall economy of
the Lawton area, as well as of the state as a whole.”
The
Commission voted 2-1 to approve the cogeneration plan. Commissioner Bob Anthony
cast the dissenting vote. In his dissenting opinion, Commissioner Anthony said
that the contract between AEP-PSO and the cogeneration plant should be limited
to 5 years, rather than the 20 years established in the Commission order.
-OCC-
All OCC
advisories and releases are available at www.occ.state.ok.us