OG&E to purchase Redbud

[Codoria]

This is a little dated but I didnt remember seeing anyone discussing it.

Power Engineering - Redbud gas fired power plant sells for $852m

Redbud gas fired power plant sells for $852m
21 January 2008 - Kelson Holdings, a Maryland holding company, agreed to sell the 1230 MW Redbud natural gas-fired power plant in Oklahoma for $852m, or $692/kW.

Oklahoma Gas & Electric will acquire a 51 per cent interest in the Redbud facility, Grand River Dam Authory 36 per cent and Oklahoma Municipal Power Authority 13 percent. OG&E would operate the plant, which has four, 300 MW-plus generating units.


The purchase fills the need that was to have been met by construction of the coal-fired Red Rock plant, which was cancelled late last year. OG&E described Redbud as a new, efficient combined-cycle, gas fired plant connected to the OG&E transmission system near the Oklahoma City area.

The company said the purchase price was below the cost of constructing a new, gas-fired facility.

Kelson Holdings currently owns or leases four combined-cycle gas-fired facilities located in SPP and SERC having an aggregate total generating capacity of 4002 MW. Kelson Holdings is indirectly and wholly owned by Harbinger Capital Partners

[jbrown84]

Where is this plant and what was it being used for previously?

[Codoria]

I think its in Eastern Oklahoma County, near Luther.

[metro]

Where is this plant and what was it being used for previously?

I agree. What doesn't make sense to me is that if this plant, plus OG&E's other plants supposively weren't generating enough electricity for our growth patterns, then how come they don't need another plant. Don't get me wrong, I'm glad they don't plan on building the coal fired plant (at least they aren't yet), but if this plant was already online, how can they say Oklahoma needed more electricity generation? Was it just because they wanted to continue their monopoly in OKC?

[wsucougz]

From what I understand, this plant was an independently owned operation that was highly underutilized. When OG&E's plans for a new coal plant got squashed, it looks like they figured it was cheaper to buy them out than buy the electricity from them.

There is much more to the story but I'm sure I'd screw up the facts in retelling it - the info is out there.

[CuatrodeMayo]

Yes...this is just north of HWY 66 and a couple of miles west of Luther. This plant is only a few years old.

[venture]

Agree with others...at least it isn't a coal fire plant. I think News 9 did a story a few nights ago on the future of power generation in Oklahoma. The pushed the whole switchgrass thing and what not. Sounds better than from corn, since we could actually use that to feed people. :-P Still would like to see more wind power developed here. Also wonder how expensive and feasible it would be for water generated power to come into play - at the least it would make a few more lakes. Nuclear would probably be too expensive to build, and we really dont have any major sources of water for the plants like they do back East and in the Great Lakes.