Public Service Company of Oklahoma, Oklahoma Gas & Electric Company and the Oklahoma Municipal Power Authority announced plans this quarter to jointly construct a new electric coal-fired generation unit in north central Oklahoma.

“This project is an investment in our children and grandchildren and a win-win for Oklahoma,” said OUSA Executive Director Michelle Wynn. “Because these companies chose to work together, their customers will benefit from significant savings, Oklahoma will see an additional $20 million in tax revenue, and the many thousands of Oklahomans who own shares in these companies could see the value of their investment increase.”

The estimated $1.8 billion project is the result of PSO’s December 2005 Request For Proposals (RFP) for up to 600 megawatts of new baseload generation to be available by the summer of 2011. Baseload units run year-round to ensure adequate supplies of low-cost electricity.

PSO selected OG&E’s proposed construction of a single unit that will serve the future needs of PSO, OG&E and OMPA customers as the winning bid.

“We viewed responding to PSO’s RFP as an opportunity to fulfill their future needs and ours as well by building only one highly efficient unit,” said OG&E CEO Steve Moore. “By building one unit instead of two, we anticipate saving Oklahoma customers at least $200 million in construction costs alone. We also reduce the environmental impact associated with multiple units spread across the state.”

“This is great news for our customers and for Oklahoma,” said Stuart Solomon, PSO president and chief operating officer. “This new facility will provide reliable, efficient and environmentally responsible power for our customers for many decades to come, supporting their increasing power needs as well as the ongoing growth and development of local and state economies.”

The unit, to be called Red Rock, will be constructed using the latest proven technologies to limit emissions and particulate matter. The facility will use best available control technology (BACT) including flue gas desulfurization (commonly called a scrubber) and selective catalytic reduction (SCR) to limit emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx). Based on the goal of achieving the ultra-supercritical design, the new Red Rock facility is expected to be the cleanest unit of its size using coal from the Powder River Basin.

“It’s important that as our state continues to grow and prosper that we are mindful of the balance between reasonably priced energy and environmental stewardship,” Wynn said. “This project demonstrates the environmental commitment of each of the partners and sets the example for how to successfully maintain that balance.”