Regulators to consider approval of PSO’s $730 million gas plant acquisition

 

Oklahoma Corporation Commissioners will meet Wednesday for a regular meeting and consider whether to approve Public Service Company’s $730 million acquisition of Green Country Generating Facility.

As outlined by company executives in their filing with the commission (PUD2024-000057), the purchase of the Jenks natural gas plant will mean higher rates for customers. In her testimony, Rebecca A. Schwarz, Director of Regulatory Pricing and Analysis with AEP, PSO’s parent company, explained the estimated net rate impact for an average residential custsomer using 1,100 kWh per month reflects a $7.24 per month or 5.44% increase.

At the time PSO announced its intended acquisition of the plant, it said it would need approval of the Corporation Commission  as well as the Federal Energy Regulatory Commission along with meeting anti-trust requirements.

It also maintains that the acquisition price is “prudent.” The Green Country plant is described as a combined cycle plant with an output capacity of 795 MW. PSO announced the negotiated price in mid-September and is seeking approval from the state regulators of a rider to recover the annual revenue requirement of Green Country until PSO implements new rates in the next base rate case.

Filings by PSO indicated some of the information was considered to be “confidential or highly sensitive and confidential” and the firm asked for a protective order. Some testimony was already blocked from public view.

Corporation Commissioners intend to meet at 1:30 p.m. Wednesday.