Wind

OG&E OU Spirit wind farm cost recovery plan wins approval

OG&E OU Spirit wind farm cost recovery plan wins approval

Regulators in Oklahoma have approved a plan submitted by Oklahoma Gas & Electric whereby the electric utility can begin recovering costs of its 101 megawatt OU Spirit wind farm as it begins commercial operation.

A temporary addition, or rider, to OG&E customers' monthly electric bills, will enable it to begin recovering costs as each of the 44 new turbines comes online and begins delivering electricity to them.

The order by the Oklahoma Corporation Commission also assigns to OG&E's customers the proceeds from sales of the wind farm's renewable energy credits, including credits purchased by the University of Oklahoma.

The university says that it expects the new wind farm to help its Norman campus achieve a goal to have all of its purchased energy be from renewable sources by 2013. It is one of the largest renewable energy commitments ever by a US public university.

OU Spirit has been under construction this year near Woodward, in western Oklahoma.

"We applaud our state regulators for their support of this project that adds to Oklahoma's renewable energy portfolio in a way that benefits our customers, the university, and our entire state," says Howard Motley, OG&E vice president for regulatory affairs.

"We also appreciate OU for its leadership, demonstrated by such a strong commitment to renewable energy," he adds.

The rider will be in effect until the OU Spirit facility is added to OG&E's regulated rate base as part of a general rate case expected to be completed in 2011 will end the temporary rider. The net impact on the average residential customer's 2010 electric bill should be approximately 90 cents a month, decreasing to 80 cents a month in 2011.

When OU Spirit comes online, OG&E will have 270MW of wind generation capacity. The utility is asking the commission for approval to build two additional wind power projects totaling 280MW that could come online in 2012.

OG&E, a regulated electric utility, serves with more than 776,000 customers in Oklahoma and western Arkansas.

Richard A. Kessler

Published: Friday, November 27 2009

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