Fort Sill energy center decision delayed to next week

Oklahoma Corporation Commissioners delayed a possible decision this week on a proposed $118 million energy center that Public Service Company of Oklahoma wants to build at Fort Sill.

Commissioners Todd Hiett and Dana Murphy expressed doubts Wednesday during a meeting whether the center would survive Oklahoma Supreme Court legal review.

“I respectfully disagree it would stand up in the Supreme Court,” said Hiett, the chairman after commissioner Dana Murphy said she could not support the proposal as it was drawn up by PSO.

“I’m concerned about the full return at a premium price,” said Murphy. “I want more time to work on it.”

She indicated she was working on her own redrawing of the PSO proposal and said under questioning, “it’s gonna be a hybrid.”

Commissioners plan a meeting Monday to consider a possible vote on the energy center.

“We have a few days and have to make it conform to the statutes before it can win approval in the Supreme Court,” added Hiett.

“We’ve shown Oklahoma is supportive of the military but there is language in the PSO order that is incredibly troubling to me,” added Commissioner Murphy. Both expressed concerns about the costs and how they will be passed along to PSO consumers.

Their comments came following a presentation by Commissioner Bob Anthony in which he advocated approval of the PSO project as a show of support for the military. Anthony pointed out the military post is home to two of the nation’s Combat Arms Centers, the Artillery School and  the Air Defense Artillery School which was moved to Fort Sill from Fort Bliss, Texas in 2009. The Artillery School was founded at Fort Sill in 1911.

“Of all the places in the U.S. they could put 2 combat arms, they picked Oklahoma highlighting the importance of Fort Sill,” said Commissioner Anthony who has exhibited strong support for the PSO project.

During a previous hearing last month as reported by OK Energy Today, Anthony called the project a “security issue” and indicated it should be approved.

The project includes a 30-year lease that PSO has with the Army post. As proposed, the energy center would include solar power and natural gas-fired reciprocating internal combustion engines and offer a guarantee of at least 14 days of emergency power in case of a disaster or emergency.  PSO customers would share the power outside of any such disaster but the Army would have the legal right to “island” Fort Sill and the center from the rest of the grid.

The Commission’s Public Utility Division and one of its Administrative Law Judges had earlier opposed the proposed center because of its costs that would be borne in part by consumers.

The Office of former Attorney General Mike Hunter had also openly opposed the center but changed the stance in a recent filing, stating it did not oppose the Commission granting the request of PSO for preapproval “subject to modifications to the total amount to be collected from PSO’s customers.”

The Attorney General’s office called for a Cost Cap to limit the cost responsibility of PSO’s customers including the cost of debt.

The order as proposed by the Attorney General “commends PSO for working cooperatively with the U.S. Army and that it was proper to consider the needs of the Fort Still Army (sic) Base.