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OG&E reaches rate settlement on Mustang gas project recovery

Oklahoma Gas and Electric Co. reached a settlement agreement with the Oklahoma Corporation Commission staff and other parties to recover the utility's investment in modernizing the Mustang Energy Center.

The OGE Energy Corp. utility has invested nearly $400 million to develop seven new gas turbines to replace 1950s-era power generating units. Despite the investment, the average residential customer will see a net rate reduction of approximately $64 million, or $4.44 per month, OG&E said in a June 13 news release.

OG&E originally sought to increase rates by about $70 million annually to recover its investment but lowered its request following passage of federal tax reform at the end of 2017.

"In the short time the plant has been operational, its units have been called upon more than 700 times to support regional grid reliability, producing more energy than the old plant did in its last full year of operation," OG&E spokesman Brian Alford said in the news release.

The utility also said the installation of dry scrubbers at its Sooner facility near Red Rock and the conversion of two of three coal-fired units to natural gas at its Muskogee plant are on track to meet U.S. Environmental Protection Agency Regional Haze Rule requirements.

In March, OG&E customers saw a fuel cost reduction of $13.34 per month.