PSO’s planned purchase of natural gas plant in Jenks could mean higher rates for customers

Green Country Energy - J-Power USA

 

Public Service Company of Oklahoma filed for Oklahoma Corporation Commission (OCC) approval to purchase a natural gas combined-cycle generation plant located in Jenks, Oklahoma. But it will also mean higher rates for PSO customers.

The company, in making the announcement explained the purchase will meet customers’ projected power needs using an existing local facility while supporting the Oklahoma economy.

If approved as proposed, the average residential customer using 1,100 kWh per month would see an increase of $7.24 or 5% of their total bill by June 2025. PSO’s announcement did not reveal details of the amount of the purchase.

“Adding this natural gas facility to our fleet allows us to serve our customers efficiently and reliably without the need to construct a new plant,” said PSO President and Chief Operating Officer Leigh Anne Strahler.

“PSO’s purchase of this cost-effective, local resource is a win for our customers and for the community.”

If approved, the existing 41-acre facility would add 795 megawatts (MW) of long-term power to PSO’s generation mix by June 2025, which primarily includes renewable energy and natural gas. PSO entered into an agreement to purchase the plant from J Power, a 50/50 joint venture between a Tokyo-based entity and John Hancock Infrastructure Fund, in June 2024.

PSO said in its announcement that through a competitive bidding process that ensured all available options were evaluated, Green Country was the top choice for balancing value and efficiency. The utility called the purchase “the most economical solution to provide customers with current power generation needed for today and well into the future.”