Dive Brief:
- Oklahoma Gas and Electric Co. (OG&E) is facing up to $1.5 billion in capital improvements to its fleet of power plants to comply with federal rules designed to reduce regional haze near national parks and wilderness areas.
- CEO Pete Delaney said Wednesday during a conference call on third-quarter results that much of those costs, which could include installing scrubbers on coal units or retrofitting them to use natural gas, could be passed on to customers.
- OG&E will have 55 months to comply with the federal haze rules. Delaney said the utility will have detailed environmental compliance plans ready by the first quarter.
Dive Insight:
OG&E is among the nation's utilities that have been more resistant to complying with federal environmental regulations, both on principle and the costs involved. Last week, a federal appeals court turned back a bid by the utility and state of Oklahoma for a review of a lower court decision upholding the federal haze rules. The utility is considering an appeal to the Supreme Court. The utility also has to comply with rules to curb mercury emissions and air toxics standards and nitrogen oxides.
