News from the Oklahoma Corporation
Commission
Phone: (405)
521-4180, FAX: (405) 521-6945 m.skinner@occemail.com
December 21,
2004
Agreement means savings for
ratepayers
As
the result of an order approved today by the Oklahoma Corporation Commission,
Oklahoma Gas and Electric Company customers will begin receiving a monthly
credit in January. Specifically, today’s order gives final approval to a
stipulated agreement regarding the establishment of a new OG&E cogeneration
credit rider.
Commission
Chairman Denise Bode said the credit is partly the result of the new
cogeneration contract between OG&E and PowerSmith, which was approved by
the Commission earlier this year.
“When
we approved the PowerSmith contract in August, I called it a ‘win-win’, in part
because it helped ensure affordable, reliable power for all of OG&E
customers and would save them money,” said Bode. “Today’s approval of the new
credit rider reflects those savings.”
Vice-Chairman Bob Anthony noted the balance of the
savings comes from reductions in the contract between OG&E and AES Shady
Point.
“The AES facility at Poteau provides a double
benefit to the state by burning Oklahoma coal and making electricity available
to OG&E,” Anthony explained.
“Capacity charges for the plant decline over the life of the
contract. Nearly $50 million of the $80
million annual reduction reflected in today’s order is the result of the most
recent recalculation these capacity charges.”
Commissioner
Jeff Cloud praised the work of all those involved in formulating the stipulated
agreement on the new credit rider.
“Commission
staff, the Attorney General’s office, representatives of the Oklahoma
Industrial Energy Consumers (OIEC), OG&E, and AES Shady Point should be
congratulated for their successful effort,” said Cloud. “Their hard work will
benefit all of OG&E’s Oklahoma customers.”
It
is estimated that under the new cogeneration credit rider, an OG&E
residential customer using 1,000 kilowatt hours will save approximately $5 a
month.
-occ-
(All OCC advisories
and news releases are available at the Commission web site www.occ.state.ok.us)