Oklahoma Gas and Electric Company has signed a definitive agreement with Kelson Holdings LLC, the Grand River Dam Authority and the Oklahoma Municipal Power Authority to purchase the natural gas-fired Redbud power plant near Luther, Okla.
Kelson Holdings, a Maryland holding company, agreed to sell Redbud for $852 million following a competitive sale process involving Redbud.
Subject to various regulatory approvals and closing conditions, OG&E will acquire a 51 percent interest in the Redbud facility, GRDA 36 percent and OMPA 13 percent. OG&E would operate the plant, which has four, 300-megawatt-plus generating units.
OG&E serves more than 762,000 retail customers across 30,000 square miles in Oklahoma and western Arkansas, and a number of wholesale customers throughout the region. With about 6,100 megawatts of capacity in eight power plants, OG&E generates electricity from natural gas and western coal. OG&E also has two wind farms with 170 megawatts of capacity, with plans and projects expected to increase that total by 600 megawatts in the years ahead.
GRDA, with total generation capability of 1,480 megawatts, transmits and delivers wholesale electricity across a 24-county service area in Northeast Oklahoma to municipal power providers, electric cooperatives and industries.
OMPA provides wholesale electricity to 35 Oklahoma cities and towns that own their electric systems.