OG&E Issues Stern Rebuttal to EPA's Oklahoma Haze Plan

OKLAHOMA CITY, May 23, 2011 /PRNewswire/ -- In comments filed today with U.S. Environmental Protection Agency, Oklahoma Gas and Electric said that the agency's federally mandated plan to reduce haze in Oklahoma and neighboring states is flawed, contains numerous errors and would result in Oklahomans being saddled with billions of dollars in unnecessary utility costs.  The company added that the EPA rule should be rejected in favor of a state plan proposed by Oklahoma.

The OG&E comments were included in the utility's formal response to a proposed EPA rule that, if adopted, would force the state's two largest utilities to add costly scrubbers to their coal-fired power plants rather than adopt a more-sensible state plan.

"There seems little doubt that the EPA proposal does not follow the agency's own rules," said Patricia D. Horn, OG&E Vice President for governance, environmental, health and safety. "It's disconcerting to see the agency fail to follow its own rules and guidelines in establishing both the cost and visibility improvement estimates underlying the proposed rule."

Should the EPA rule be finalized in its current form, it likely would trigger the largest customer rate increase in OG&E's history with minimal, if any, impact on regional haze.  The company estimates it could cost more than $1 billion to comply with the EPA proposal.

Horn added that OG&E is not alone in its opposition to the EPA on this issue. The Governor's office, state Attorney General, Oklahoma Corporation Commissioners, Oklahoma Department of Environmental Quality and others have voiced opposition to the EPA plan saying that the state has developed a plan that would be more effective than scrubbers and cost far less.

Instead of scrubbers, the Oklahoma plan calls for use of low sulfur coal and gives affected utilities in the state flexibility of burning less coal and more natural gas on a timetable that achieves the goals of the Regional Haze rule while limiting  the cost  to customers. In addition to its cost effectiveness, the Oklahoma plan is just as effective in addressing regional haze, Horn said. She also noted the regional haze regulations pertain to visibility in national parks and wilderness areas and not to public health.

"It is our desire that the EPA rethink its position and adopt the Oklahoma plan," Horn said.  "Should the agency decide otherwise, we will explore options to ensure that we are doing what is in the best interest of all stakeholders.  It's our objective to seek compliance with the regulations while doing so in a reasonable and rational manner."

A decision by EPA is expected later this year.

OG&E is a subsidiary of OGE Energy Corp. (NYSE: OGE), and serves approximately 785,000 customers in a service territory spanning 30,000 square miles in Oklahoma and western Arkansas. OGE Energy also is the parent company of OGE Enogex Holdings LLC, a midstream natural gas pipeline business with principal operations in Oklahoma.

SOURCE OGE Energy Corp.