Adding more diversity to its generation mix…

GRDA completes purchase of Redbud Plant with OG&E, OMPA

The Redbud Plant, near Luther, Oklahoma. On September 29, GRDA, Oklahoma Gas & Electric and the Oklahoma Municipal Power Authority (OMPA) completed the purchase of the 1,230 megawatt, gas-fired facility. GRDA paid approximately $306 million for 36 percent of the facility.

Vinita – The Grand River Dam Authority is announcing it has completed the purchase of a 36 percent interest in the Redbud Plant, a 1,230 megawatt natural-gas fired plant near Luther, Oklahoma. Along with purchase partners, Oklahoma Gas and Electric (OG&E) and the Oklahoma Municipal Power Authority (OMPA), GRDA finalized the deal on Monday, September 29. OG&E will own a 51 percent interest in the facility; OMPA’s share is 13 percent.

The total cost of the Redbud Plant for all three partners is $852 million. GRDA is paying approximately $306 million for its share.

According to GRDA Chief Executive Officer Kevin Easley, the Redbud acquisition adds approximately 435 MW to the Authority’s existing generation capacity.

“With Redbud, GRDA adds new generating capability and greater generation diversity,” said Easley. “That means we can be less dependent on the open market purchases at times of extremely high demand or plant outages. That translates into savings for our ratepayers.”

GRDA’s existing generation portfolio includes a two-unit Coal Fired Complex at Chouteau, as well as hydroelectric generation at Pensacola Dam (Langley); Robert S. Kerr Dam (Locust Grove) and the Salina Pumped Storage Project (Salina), along the Grand River system. The facilities combine for 1,480 MW of generation.

Easley cited the location of the Redbud plant (near the western edge of GRDA’s service area) and the partnership with other Oklahoma-based utilities as other benefits of the plant acquisition.

“It’s really a win-win for GRDA,” he added. “Power demands within our existing customer loads, including loads along the western side of our service area, have grown steadily since the 1990s. Our portion of Redbud will help us to meet those demands for years to come.”

Headquartered in Vinita, GRDA generates and transmits electricity to customers in a 24 county service area in Oklahoma. GRDA customers include municipal, electric cooperatives and industries.

Grand River Dam Authority News Release

Contact: Justin Alberty
Corporate Communications Director
Grand River Dam Authority
(918) 256 5545
jalberty@grda.com
www.grda.com

For immediate release: 9/30/08