By a split vote of 2-1, Oklahoma Corporation Commissioners have approved the fourth major power expansion project of Oklahoma Gas and Electric as the utility attempts to meet the exploding demand for electricity from new state industrial projects and data centers.
The Frontier BESS or Battery Energy Storage System, a $394 million project near Ponca City was the last of four major energy projects proposed last year by OG&E. Commissioners Kim David and Brian Bingman supported the project as proposed but it was opposed by Commissioner Todd Hiett.
OG&E responded after the vote with a statement saying the pre-approval of the Frontier Energy Storage Project marked “an important milestone in meeting Oklahoma’s growing energy needs.”
An all-source, competitive bidding process identified this project as one of the lowest-cost solutions to meet rising energy demand, as shown in our 2024 Integrated Resource Plan, not in response to data center development. When the 302-MW battery facility in Kay County enters service in late 2027, the project will directly benefit our customers by strengthening grid reliability, improving system efficiency, and dispatching power during peak demand.
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OG&E’s 2024 Integrated Resource Plan (IRP) shows OG&E must have additional, new power generation resources to meet our customers’ electricity demand and SPP reserve margin requirements.
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The Frontier Energy Storage project was one of the most cost-efficient capacity options following an all-source RFP.
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Over the last five years, demand for electricity from OG&E’s customers has increased 25% and we serve nearly 40,000 more customers than we did in 2021. This project will help OG&E continue to provide safe and reliable service at low costs to all of our customers.
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The initial estimated impact for a typical residential customer once the project begins operating in 2027 is about $2.21 per month, which could decrease as OG&E adds more customers. Cost impacts could be lower if the OCC approves OG&E’s large load tariff. The large load tariff is intended to ensure large load customers pay for their own dedicated infrastructure and their fair share of system costs that serve all customers.
