OGE Energy Corp.'s (OGE) electric utility unit announced two
agreements to roll out a smart grid program, for which the company
is eligible for about $130 million in U.S. stimulus program
funding.
Oklahoma Gas & Electric Co., which serves customers in
Oklahoma and western Arkansas, said it has reached agreements with
its smart-grid program partners. If approved by state regulators,
OG&E will be authorized to spend up to $366.4 million to deploy
smart-grid technology through 2012.
It also reached an agreement with the U.S. Department of Energy
to finalize the process for receiving the grant. OG&E was
selected in October for the government funding, which is expected
to cover about a third of the smart-grid program's costs.
The company estimates that if approved, the program will add
$1.57 a month, on average, to residential electric bills.
OGE Energy Chairman and Chief Executive Pete Delaney said the
company expects the smart-grid program will allow the regulated
utility to defer the need to expand net generating capacity until
after 2020 and lower OG&E's operating costs.
The company recently completed installing more than 42,000 smart
meters in Norman, Okla.
A smart meter measures a household's electricity usage in short
increments. A wireless link sends the usage data to the utility in
near real time and tells the customer the current price being
charged for that power, which could be an incentive to turn off
some lights or appliances.
OGE Energy last month reported sharply higher first-quarter
earnings, with its electric utility being aided by higher rates and
colder than usual weather while its natural gas business benefited
from higher prices for natural-gas liquids and higher gathering and
processing volume.
Shares closed Friday at $36.44 and were inactive premarket.
Markets were closed Monday for Memorial Day.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com