Oklahoma Gas and Electric Company (OG&E)Wednesday asked for approval from the Oklahoma Corporation Commission (OCC) of its plans to replace two aging power generation units at the Horseshoe Lake Power Plant in eastern Oklahoma County with more efficient units that will deliver increased reliability, improved efficiency and operational flexibility, and lower emission rates, all at the lowest reasonable cost for its customers.
Overall, the Horseshoe Lake project is expected to cost $331 million, and will result in an increase of $2.20 per month for the average residential customer, if approved by the Corporation Commission, but not until the new generation units begin providing power to customers planned for late 2026.
The Horseshoe Lake Power Plant units being replaced are the oldest in OG&E’s generation fleet and have served customers for more than 60 years. OG&E will replace the vintage gas-fired steam units with new gas-fired combustion turbines. The new units will provide approximately 450 megawatts of generation capacity.
Additionally, the new units will have the ability to be turned off and on quickly, allowing them to supply power during peak times and lower emission rates than the existing units. The new combustion turbines will be designed to burn hydrogen safely and reliably once it becomes available as a fuel and could convert to use hydrogen as its primary fuel in the future.
“We’ve seen tremendous growth across our service area as the communities we serve continue to thrive, “said Sean Trauschke, OGE Energy Corp. chairman, president & CEO. “With affordability for our customers top of mind, adding combustion turbines at our existing Horseshoe Lake facility, with its highly skilled workforce, provides our customers the most cost-effective option to meet their energy needs.”
To help meet power generation needs in recent years, OG&E has invested in solar and wind generation, expanded energy efficiency and demand response programs, as well as acquired existing power generation facilities. Due to significant growth in OG&E’s customer base and pending Southwest Power Pool (SPP) rules increasing power generation capacity to support reliability, the electric company sought new resources to meet generation needs.
OG&E conducted an extensive analysis to determine what combination of new resources, including solar power generation, are the lowest reasonable costs to customers, followed by a competitive bid process. OG&E is exploring solar expansion through Department of Energy grants through the Investment in Infrastructure and Jobs Act (IIJA) and Inflation Reduction Act (IRA) and will continue to pursue solar as part of its commitment to fuel diversity.
“Our service area enjoys plentiful options for power generation, including renewables and natural gas, and yet we operate in states prone to severe weather making resiliency a critical component of our power generation decisions. With this in mind, we always look for opportunities that help us balance resiliency and reliability needs for our customers. The Horseshoe Lake investment is an exciting opportunity to provide increased reliable and resilient electric service to our customers as we continue to plan for the future,” Trauschke said.
Source: OGE press release
