OGE Battery Storage Project Near Ponca City Nears Final Approval

OG&E Battery Storage Project Near Ponca City Nears Final Approval

The OG&E battery storage project near Ponca City is moving closer to becoming one of Oklahoma's largest energy storage investments, but state regulators are still deciding how much of the nearly $394 million project should be paid by customers.

The Oklahoma Corporation Commission supports the need for additional battery storage to strengthen the electric grid, but commissioners remain divided over OG&E's request to recover project costs through a special rider added to customer bills. If approved, residential customers would see an estimated $2.27 monthly increase beginning in 2027 when the facility enters service. The debate comes just months before OG&E is expected to file a broader rate case that could reshape electric rates across much of Oklahoma.

OG&E Battery Storage Project Faces Final Regulatory Question

The proposed battery storage facility would be built near Ponca City and is designed to store electricity during periods of lower demand before releasing it back onto the grid when demand spikes during extreme weather or other high-use periods.

The remaining issue before the Oklahoma Corporation Commission is whether to approve a cost recovery rider allowing OG&E to begin collecting project costs from customers before a traditional rate case is completed.

Unlike standard base-rate increases, riders allow utilities to recover the cost of specific infrastructure projects much sooner. Supporters argue that process encourages investment in grid reliability, while opponents say it shifts financial risk to ratepayers before regulators complete a full review.

Commission Chair Kim David expressed concerns about approving the rider without additional safeguards for Oklahoma customers.

OG&E

0:11

Commissioners Seek Stronger Ratepayer Protections

Commissioner Todd Hiett proposed adding language that would better protect customers if the project exceeds its current budget or experiences construction delays.

The proposed protections could limit the amount OG&E is allowed to recover through the rider and require the utility to absorb certain expenses instead of automatically passing those costs on to customers.

According to OG&E, the estimated $2.27 monthly increase is based on current projections. Regulators noted that final customer impacts will depend on the language ultimately approved by the commission and whether the project remains on schedule and within budget.

OG&E is expected to file its next comprehensive rate request later this fall.

Why The Decision Matters For Oklahoma

Battery storage is becoming an increasingly important tool as utilities work to improve grid reliability during periods of extreme weather and rising electricity demand.

Projects like the Ponca City facility allow electricity generated during lower-demand periods to be stored and delivered when homes and businesses need it most, helping reduce stress on the regional grid managed by the Southwest Power Pool.

For Oklahoma customers, however, the discussion extends beyond one battery project. The commission's decision could establish how future large-scale energy investments are financed and how financial responsibility is shared between utilities and ratepayers. With additional grid modernization projects expected in the coming years, regulators say the safeguards approved in this case could influence future utility investments across Oklahoma.

🔴 MORE RADIO NEWS