Current Report Filing (8-k)
February 18 2016 - 2:39PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of report (Date of earliest event reported) | February 12, 2016 |
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OGE ENERGY CORP. |
(Exact Name of Registrant as Specified in Its Charter) |
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Oklahoma |
(State or Other Jurisdiction of Incorporation) |
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1-12579 | 73-1481638 |
(Commission File Number) | (IRS Employer Identification No.) |
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321 North Harvey, P.O. Box 321, Oklahoma City, Oklahoma | 73101-0321 |
(Address of Principal Executive Offices) | (Zip Code) |
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405-553-3000 |
(Registrant's Telephone Number, Including Area Code) |
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(Former Name or Former Address, if Changed Since Last Report) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 8.01. Other Events
OGE Energy Corp. (the "Company") is the parent company of Oklahoma Gas and Electric Company ("OG&E"), a regulated electric utility with approximately 825,000 customers in Oklahoma and western Arkansas. In addition, the Company holds a 26.3 percent limited partner interest and a 50 percent general partner interest in Enable Midstream Partners, LP.
As previously reported, on December 2, 2015, OG&E received an order from the Oklahoma Corporation Commission ("OCC") regarding a plan to comply with the Federal Clean Air Act as well as the Mustang Modernization project. By a two to one vote, the OCC denied OG&E’s plan to comply with the environmental mandates of the Federal Clean Air Act and the Regional Haze and Mercury and Air Toxics Standards. The OCC also denied OG&E’s request for pre-approval of its Mustang Modernization Plan, revised depreciation rates for both the retirement of the Mustang units and the replacement combustion turbines and pre-approval of early retirement and replacement of generating units at its Mustang site, including cost recovery through a rider.
On December 11, 2015, OG&E filed a motion requesting modification of the OCC order for the purposes of approving only the Environmental Compliance Plan ("ECP"). OG&E was not seeking modification to any other provision of the OCC order, including cost recovery. OG&E also agreed that it would not implement a rider for recovery of the costs of the ECP until and unless authorized by the OCC in a subsequent proceeding.
On December 23, 2015, the OCC rejected, by a two to one vote, a proposal by Commissioner Dana Murphy to grant OG&E’s December 11, 2015 motion.
On February 12, 2016, OG&E filed an application requesting the OCC to issue an order approving the installation of dry scrubbers at the Sooner facility, on or before May 2, 2016. The application states that if the application is not approved by May 2, 2016, OG&E will decide at that time whether to cancel the dry scrubber equipment and installation contracts and make plans to convert the Sooner coal units to natural gas. Additionally, if the request is not approved, OG&E expects to seek recovery in subsequent proceedings for the expenditures incurred for the dry scrubber project and reasonable stranded costs associated with the discontinuance of the Sooner coal units.
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(d) Exhibits | | |
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Exhibit Number | | Description |
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99.01 | | Press release dated February 12, 2016 announcing OG&E filed an application requesting the OCC to issue an order approving the installation of dry scrubbers at the Sooner facility. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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| OGE ENERGY CORP. |
| (Registrant) |
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By: | /s/ Scott Forbes |
| Scott Forbes |
| Controller and Chief Accounting Officer |
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February 18, 2016
OG&E seeks approval of scrubbers at Sooner Power Plant
OKLAHOMA City - Oklahoma Gas and Electric Co. today filed an application at the Oklahoma Corporation Commission seeking approval before May 2, 2016, for the addition of scrubbers at the Sooner Power Plant. With time running out to be in compliance with the EPA mandate on Regional Haze, OG&E has narrowed its request to the commission to address only the scrubbers at Sooner and has said it will seek regulatory relief on all other aspects of the environmental plan at a later date.
This filing was made only after OG&E successfully negotiated a suspension of the existing scrubber contracts. The temporary suspension allows time for the company to make a final attempt at gaining approval from the commission that adding scrubbers is the best course of action to be in compliance with the federal mandate and still meet the 2019 deadline. Without that approval, the company runs the risk of being second-guessed in 2019 upon completion of the project, putting more than $500 million at risk.
“While OG&E does not need permission to take a particular course of action in meeting its environmental obligations, for projects of this magnitude it is important for us to know that regulators agree with our overall plan,” said Paul Renfrow, Vice President Public Affairs and Corporate Administration. “Business, political and other circumstances almost certainly will change between now and completion of the project in three years, and the decision we make today will be second guessed then.
“This filing is different from the previous filings in that it has been narrowed down to the core request of approving the plan to add scrubbers to the Sooner plant, and we are filing it under a different section of Oklahoma law,” said Renfrow. “We believe this approach addresses a chief concern that was brought up in the previous case.”
If the commission does not provide approval before May 2, 2016, the company must consider whether to proceed with the scrubber installation at the Sooner plant. Absent approval, the company will decide whether to cancel the scrubbers and make plans to convert the Sooner coal units to natural gas. Doing so the would reduce the company’s coal-fired generation fleet from five units with 2500 megawatts capacity to one 500 megawatt unit, thereby greatly reducing the company’s fuel diversity.
“We are hopeful that the commission agrees with us that preserving fuel diversity is in the best interest of customers,” said Renfrow.
OG&E, a subsidiary of Oklahoma City-based OGE Energy Corp. (NYSE: OGE), is a regulated electric utility that serves approximately 825,000 customers in Oklahoma and western Arkansas.
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