For immediate release: 1/31/11

In water issues case…
GRDA pleased with court decision

Vinita – A recent decision by the United States Supreme Court has reaffirmed the Grand River Dam Authority’s ownership claims to the waters of the Grand River and brought to a close a legal battle that began in 2007.

On January 24, 2011, the United States Supreme Court declined to hear a dispute challenging GRDA’s rights to sell water from Fort Gibson Lake, located on the Grand River. By doing so, it ended the legal challenges first brought by four water districts and two private companies in 2007.

The Plaintiffs, which pull their water supplies from that lake, claimed the United States government, which owns and operates the Fort Gibson Dam, had jurisdiction over waters in the lake, and not GRDA.

However the Court of Civil Appeals in Oklahoma ruled that GRDA -- which was created by the state in 1935 and given jurisdiction over the Grand River -- was the proper owner of the waters. The Oklahoma Supreme Court declined to reverse the decision of the Court of Civil Appeals and the Plaintiff’s thereafter petitioned the United States Supreme Court to hear the case.

The United States Supreme Court’s decision to not take up the dispute reaffirms that the case was properly decided in state courts, said GRDA Chief Executive Officer Kevin Easley.

“We’re very pleased with the ruling,” said Easley. “Not only is it good news GRDA and it rate-payers across Oklahoma, but it reaffirms state ownership of state waters.”

Headquartered in Vinita, GRDA is funded by the revenues from the sale of electricity and water. GRDA built and operates the Pensacola Dam (Grand Lake), Robert S. Kerr Dam (Lake Hudson) and the Salina Pumped Storage Project (Saline Creek arm of Lake Hudson) on the Grand River. These facilities, along with the GRDA Coal-Fired Complex and the Red Bud Gas Plant combine for a total generation capability of 1,480 megawatts. GRDA transmits and delivers this wholesale electricity across Oklahoma municipal, electric cooperative and industrial customers.

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Contact: Justin Alberty, Corporate Communications Director

Grand River Dam Authority, (918) 256 5545 - jalberty@grda.com

www.grda.com