PSO plans Oologah power expansion: How it will impact your bill

Tulsa’s primary supplier of electricity plans to build two new generation units in Oologah and buy existing wind generation, but still expects to face a gap between expected demand and available capacity.

How will this impact bills?

In a rate filing with the Oklahoma Corporation Commission, the power company requested permission to recover costs associated with purchasing additional capacity, which would result in a $10 monthly increase in consumer bills over the next four years.

Where will the new capacity be added?

The largest capacity addition would come in Oologah, with new gas generation added to the existing plant, and a retrofit of the last coal unit for gas. PSO plans to buy existing wind farms in Western Oklahoma and build multiple battery storage units, including one in Oologah.

PSO said the plan presents “a balanced mix of new combined cycle natural gas located in Oologah, battery storage facilities located in Oologah and north central Oklahoma, as well as an agreement to purchase energy from existing wind resources.”

How soon will demand surpass capacity?

Documents filed in the rate case show PSO expects demand to outgrow supply in 2027, with the gap growing in the years after. 

PSO recently bought the Green Country power station in Jenks, and the calculations include that generation. Consultants testifying before the Corporation Commission said economic development deals are bringing in potential customers that PSO doesn’t currently have the capacity to serve, including data centers and other industrial services.

PSO’s Full Statement:

“At PSO, we understand our energy decisions affect the lives of our customers every day, and we take that responsibility seriously. That is why thoughtful, long-term planning for new power generation is so important.

“The generation resources included in our recent filing were chosen through a competitive process that began in 2023 as part of PSO’s long-range planning. These projects span the state and include a balanced mix of new combined cycle natural gas located in Oologah, battery storage facilities located in Oologah and north central Oklahoma, as well as an agreement to purchase energy from existing wind resources.

“This plan is designed to ensure electricity will be available when and where it’s needed at a stable, affordable cost. The new generation will strengthen energy security and reliability to meet the needs of all PSO customers.

“As Oklahoma grows, so does the demand for dependable infrastructure. PSO is preparing for that future with forward-looking investments that support current energy needs, reduce outages, and support economic growth in the communities we serve.

“We also know affordability matters. That’s why we’re continuously analyzing costs and pursuing strategies that save our customers money, whether through grid improvements, energy efficiency programs, or other initiatives that help families better manage their bills.”