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18 July 2006 -- American Electric Power's Public Service Company of Oklahoma (PSO) subsidiary today announced plans to enter into a joint venture agreement with Oklahoma Gas and Electric Company (OG&E) to build a new 950 MW coal-fueled electricity generating unit at the site of OG&E's existing Sooner plant near Red Rock, in north central Oklahoma.
The plan calls for OG&E to construct a highly efficient coal unit to be called the Red Rock Generating Facility. According to AEP, the goal is to employ ultra-supercritical design technology that offers greater efficiencies and lower emissions than other pulverized coal plant designs. PSO will own 50 percent of the new unit, OG&E will own approximately 42 percent and the Oklahoma Municipal Power Authority (OMPA) will own approximately 8 percent. Although final cost estimates for the new facility have not been determined, preliminary cost estimates are approximately $1.8 billion. The facility is expected to be operational in 2011.
The Red Rock facility will be constructed using best available control technology (BACT) including flue gas desulfurization and selective catalytic reduction to limit emissions of sulfur dioxide and nitrogen oxides. AEP said that based on the goal of achieving the ultra-supercritical design, the new Red Rock facility is expected to be the cleanest unit of its size using coal from the Powder River Basin.
The joint venture is the result of PSO's December 2005 Request for Proposals in which the company sought proposals for new baseload generation to be online in 2011. Six proposals were received by the Feb. 16, 2006 deadline. Those proposals meeting the RFP criteria were evaluated with oversight from a neutral third-party monitor.
The project is contingent upon the successful completion of definitive agreements with OG&E and OMPA, as well as regulatory approvals.
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