PSO's Jenks Power Plant Acquisition May Lead to Higher Customer Bills

Public Service Company of Oklahoma (PSO) has submitted a proposal to the Oklahoma Corporation Commission seeking approval to acquire a natural gas power plant located in Jenks for $730 million. This acquisition is expected to lead to an increase in monthly bills for PSO customers, with an initial rise of approximately $7 anticipated by June of next year, and further rate adjustments planned for 2025.

Key Takeaways

• PSO aims to purchase the Green Country Energy plant in Jenks for $730 million.

• The acquisition is projected to increase average customer bills by about $7 monthly starting next year.

• PSO argues this purchase is more cost-effective than building a new facility to meet rising energy demand.

Rationale Behind the Purchase

PSO asserts that acquiring the existing Jenks facility is a more economical strategy compared to constructing a new power plant to address the growing demand for electricity. Leigh Anne Strahler, a PSO executive, stated that integrating this natural gas facility into their operational fleet will enable them to serve customers efficiently and reliably. She further emphasized that the purchase of this "cost-effective, local resource" is beneficial for both customers and the community.

Details of the Acquisition

The power plant in question, Green Country Energy, commenced operations in 2002 and is currently under the ownership of J-Power USA. PSO's intention to purchase this facility is driven by its potential to help the company meet the projected power needs of its customer base. The company plans to implement the rate increases incrementally to finance the acquisition.

Sources

• Public Service Company of Oklahoma's power plant purchase would raise customer bills, KOSU.