PSO Announces Plans for New Baseload Generation

AEP’s Public Service Company of Oklahoma (PSO) subsidiary has announced plans to enter into a joint venture agreement with Oklahoma Gas and Electric Company (OG&E) to build a new 950 megawatt coal-fueled electricity generating unit at the site of OG&E’s existing Sooner plant near Red Rock, in north central Oklahoma.

The plan calls for OG&E to construct a highly efficient coal unit to be called the Red Rock Generating Facility. The goal is to employ ultra-supercritical design technology that offers greater efficiencies and lower emissions than other pulverized coal plant designs. PSO will own 50 percent of the new unit, OG&E will own approximately 42 percent and the Oklahoma Municipal Power Authority (OMPA) will own approximately 8 percent. Preliminary cost estimates are approximately $1.8 billion. The facility is expected to be operational in 2011.

“This is a historic announcement for Oklahoma,” said Michael G. Morris, AEP chairman, president and chief executive officer. Stuart Solomon, PSO president and chief operating officer said “This new facility will provide reliable, efficient and environmentally responsible power for our customers for many decades to come.”

Updated 07-24-2006

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