Coal, Cogeneration, Emissions, Gas

Oklahoma utility completes acquisition of coal-fired and cogeneration plants

Oklahoma Gas & Electric (OG&E) has completed its acquisition of the coal-fired AES Shady Point power plant near Poteau, Oklahoma.

The completion follows after the Federal Energy Regulatory Commission approved the deal earlier this month. FERC also approved OG&E’s acquisition of the Oklahoma Cogeneration LLC plant in Oklahoma City.

The Oklahoma Corporation Commission previously approved the two acquisitions totaling $53 million. The Shady Point plant, formerly owned by AES, has 360 MW capacity, while Oklahoma Cogeneration produces 146 MW.

OG&E is a unit of publicly traded OGE Energy Corp. For decades the company had federally mandated power purchase agreements with Shady Point and Oklahoma Cogeneration LLC.

Last year, OG&E announced it was ending the PPA with Shady Point because the economics of the agreement did not work out.  The utility actually talked about a request for outside proposals before opting to make a bid to buy the plant from AES Corp.

Ending of the PPA would possibly have forced the Shady Point plant to close. It employs close to 100 people in a high unemployment region of southeast Oklahoma.

Shady Point is coal-fired but has natural gas available at the site, a company spokesman previously said. OG&E will explore the feasibility of converting it to natural gas-fired generation.

Oklahoma Cogeneration LLC has billed itself as the first natural gas-fired combined-cycle cogeneration plant built and operated in Oklahoma. It achieved commercial operation 30 years ago.

The utility previously had two other coal-fired units within the state. OG&E spent close to $534 million on installing scrubbers on the two units at Sooner Power Plant in Noble County.

The Muskogee Power Plant was converted from coal to gas-fired units this year.

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Coal-fired, gas-fired and cogeneration, on-site power will all be part of the content offered at POWERGEN International happening Nov. 19-21 in New Orleans.