Regulators Approve Major Generation Projects Without CWIP
Oklahoma Gas and Electric notified the Securities and Exchange Commission that Oklahoma regulators approved hundreds of millions of dollars in new energy projects. The utility filed a Current Report on Form 8-K after the Oklahoma Corporation Commission issued its order late last week.
However, state regulators rejected OG&E’s request for Construction Work in Progress, meaning customers will not pay for costs during construction. The decision aligned with ongoing debates about ratepayer exposure and project timing across the Oklahoma Energy landscape.
Horseshoe Lake Units 13 and 14 Receive Pre-Approval
OG&E told the SEC the order authorizes construction of two natural-gas combustion turbines totaling 448 megawatts at its Horseshoe Lake facility. The units will enter service by the end of 2029.
Additionally, regulators concluded the utility demonstrated a clear generation need but reaffirmed that CWIP treatment would not apply. That distinction limits near-term customer burdens while allowing OG&E to advance long-term capacity planning.
Capacity Agreements Approved but Without Return Authorization
Regulatory Details for New Generation and CPAs
The SEC filing noted that the OCC also approved two Capacity Purchase Agreements, though it declined to authorize a return on the CPAs. That move aligns with regulatory caution around market-based contract returns and cost allocation fairness.
Meanwhile, OG&E updated its five-year capital plan and extended it through 2030 to reflect the new generation additions and capacity commitments.
OGE Energy Plans Mixed Debt-Equity Financing
OGE Energy stated it will use a mix of debt and equity to finance the expanded capital program. The company emphasized its goal of maintaining strong investment-grade credit ratings and achieving targeted credit metrics.
OGE also reaffirmed its long-term earnings-per-share growth target of 5% to 7%, with a focus on the upper half of that range through 2028.
Capital Spending Plan Through 2030
Five-Year CapEx Outlook
Regulators and investors received updated estimates of capital expenditures from 2026 through 2030:
| (In millions) | 2026 | 2027 | 2028 | 2029 | 2030 | Total | ||||||
| Transmission | $285 | $295 | $300 | $270 | $240 | $1,390 | ||||||
| Oklahoma distribution | 665 | 705 | 725 | 775 | 825 | 3,695 | ||||||
| Arkansas distribution | 25 | 25 | 25 | 25 | 25 | 125 | ||||||
| Generation reliability | 155 | 160 | 165 | 165 | 165 | 810 | ||||||
| Generation capacity projects | 150 | 190 | 165 | 65 | — | 570 | ||||||
| Technology, fleet & facilities | 125 | 135 | 145 | 145 | 145 | 695 | ||||||
| Total | $1,405 | $1,510 | $1,525 | $1,445 | $1,400 | $7,285 |
These numbers reflect significant investment in grid modernization, reliability, and future load growth across the region.
Forward-Looking Statements and SEC Disclosures
OG&E also included standard forward-looking statement disclaimers, citing uncertainties tied to economic conditions, regulatory actions, project execution, and market dynamics. The company encouraged stakeholders to review its latest 10-K and 10-Q filings.
Finally, OGE noted that it continues to provide investor resources through its website’s Investor Center for transparency and timely public dissemination.