Oklahoma Gas and Electric confirmed it took steps to prepare for the winter storm set to hit Oklahoma and vowed it has “sufficient fuel on hand or available to purchase.”
As temperatures dropped on Friday, the utility also said its coal inventories are at full levels at its coal-burning power plants. OG&E was one of the utilities hit with record high natural gas prices when Winter Storm Uri hit Oklahoma 5 years ago and as a result, a bond securitization law was created by the state legislature to allow fuel costs to be borne by consumers over a nearly 25-year period.
Questions about natural gas fuel supplies and coal were presented to OG&E and answers were provided on Friday.
- Did the company stock up on fuel in preparation for this particular winter storm?
Yes, OG&E has actively prepared for the impending winter storm and has sufficient fuel on hand or available to purchase, if needed, for this cold snap.. Our natural gas storage is available to support our natural gas power plants, and coal inventories are at full levels at all coal plants.
- Is the company using the fuel it had in storage?
We are prepared to use the fuel in storage to generate electricity.
- Has the company taken steps to make sure its coal piles are usable during the extreme low temperatures forecast for the next week or more?
Our coal inventories are at full levels, and we have taken measures to mitigate the effect extreme low temperatures can have on coal piles.
- Realizing the utility takes steps to prepare for winter, I am curious about preparations for the extreme weather?
Each year, we winterize all power plants by the end of October. This preparation includes building temporary enclosures around critical equipment and testing freeze-protection circuits. All available units at OG&E’s power plants are operating and ready to support the grid.
- Is OGE going to alert customers in “real” time about any price hikes? Or will it wait until after the event?
The SPP sets pricing through the SPP Integrated Market and will dispatch generation, as needed daily. All of OG&E’s available generating units are operating and ready to support the grid.
Fuel prices fluctuate throughout the year.. We have a strong supply of fuel in storage to use for this event and lock in a portion of fuel purchases each month to mitigate price fluctuations.
- Is OGE in communication with its natural gas suppliers? Is it worried about any potential “force majeure” from the suppliers and if so, will it require proof of such a declaration?
Yes, OG&E is in communication with its natural gas suppliers. We monitor supply conditions closely and require proper documentation for any declarations such as force majeure.
- Is the utility still doing business with companies the AG has accused of market manipulation during the 2021 Winter Storm?
OG&E negotiates the lowest fuel cost we can for our customers by working with many fuel suppliers, physically storing lower cost fuel, and locking in a portion of fuel purchases each month to mitigate price fluctuations. All OG&E contracted suppliers remain in good standing with the Oklahoma Secretary of State’s office.