AG and ALJ come out against PSO’s Energy Center proposed for Fort Sill

While national energy security leapt recently into the forefront with the cyber attack of the Colonial Pipeline, Oklahoma Attorney General Mike Hunter joined an Administrative Law Judge with the Oklahoma Corporation Commission in opposing a $118 million energy center at Fort Sill.

Public Service Company of Oklahoma proposed the $117.9 million project last fall including the construction of 36 megawatts (MW) of gas-fired electric generation and 10.9 MW of solar panels. The project would  allow Fort Sill, home to the U.S. Army’s Artillery school to operate in the event of an emergency for 14 days without being connected to the standard electric grid.

In recent days, the Attorney General’s Office and Administrative Law Judge Dustin R. Murer and the Commission’s Public Utility Division filed responses opposing the center which included a 36 MW Reciprocating Internal Combustion Engine or RICE generating facility on the Army post.

PSO leadership was surprised by the opposition and made note last week in a filing, stating, “Among the Report’s most concerning conclusions is its finding that the project “provides everything Ft. Sill needs and very little capacity to ratepayers in return.”

PSO responded that it was “puzzled” by the conclusion.

If approved, construction on the project would begin in fall 2021.  The solar facility would be operational in 2022, while the gas-fired generation would come online in late 2023.

 

Administrative Judge Murer, in more than 60 findings listed in his opposing report wrote that the lease agreement between the Defense Department and PSO “puts customers at too much risk and is against the public interest.” The judge said the energy center was designed specifically to the specifications needed by Ft. Sill but “fails to address PSO’s and PSO’s customers’ need for long-term capacity.”

Judge Murer concluded the competitive bidding rules were not complied with by PSO and stated that if the Energy Center were approved as requested, “the overall body of PSO’s customers would pay for the project, even though aspects of the project were intended to meet the special needs of Ft. Still.”

PSO’s Matthew A. Horeled, Vice President of Regulatory and Finance testified in March that Fort Sill needed the electricity to train those who protect our country which  was in the public interest.

The office of Attorney General Hunter provided witnesses who testified in opposition to Horeled’s testimony and PSO’s request for approval of the project .

But PSO is now taking the case before the three Corporation Commissioners and in its response to the ALJ’s report stated, “There was no point in PSO pursuing its collaboration with Ft. Sill, and there will be no point in pursuing such unique, projects in the future if the Commission deems such efforts unwelcome,
unimportant and not in the public interest.”

The utility also pointed out that OGE has a similar kind of arrangement to provide emergency electrical power to Tinker Air Force base in Oklahoma City.

Both projects would be located in an 81-acre site on the military post and “behind Fort Sill’s defense perimeter” as a national security precaution said a PSO spokesman at the time of the announcement last year.

The location for the proposed facility is west of the Dinges Sports Field Complex and south of the 31st ADA Brigade motor pools. PSO would lease the site for 30 years with an option for 10 additional years.

The project has the support of business leaders in Lawton including Rep. Rande Worth who sent a notification of his support to the Commission.

“The economic development brought by the P.S.O. solar project on Fort Sill Military Base is huge,” stated the legislator.

He also suggested that if the project is not approved and constructed, it could lead to a downsizing of the military installation by the Biden administration.

“Under the current presidential administration, there is some concern that the military is not a high priority and potential downsizing of military bases may occur. With Oklahoma’s multiple military bases, it is not unreasonable to consider that one of our military bases may be discontinued,” wrote Rep. Worthen.

The March hearing that led to the opposition by the ALJ was covered by the Southwest Ledger.

Click here for its story in early April.