OG&E and Google power deal would fund data center connections and protect existing customers
The agreement awaits regulatory approval and includes long-term payment commitments and protections against shifting costs to other ratepayers.
OG&E and a Google subsidiary reached a power agreement for three Oklahoma data center sites that utility officials say could reduce costs for existing customers, Jeff Elkins reported for The Oklahoman.
An administrative law judge recommended approval of the settlement following a Sept. 9 hearing, Elkins reported. A final order still requires Oklahoma Corporation Commission approval.
According to Elkins’ reporting, Google would cover 100% of the dedicated transmission and distribution infrastructure needed to connect its facilities and contribute toward shared grid costs. The agreement includes 12-year contract terms beginning after each site’s commissioning and ramp-up period, minimum payments regardless of actual electricity consumption, financial collateral, and fees for leaving early.
Elkins reported that OG&E’s analysis projects downward pressure on residential bills equivalent to $1.83 per month by 2027 and $6.84 by 2036. Those figures are projections; actual rates will be determined in future rate cases.
State Chamber President and CEO Chad Warmington praised the proposal, saying it offers an approach to meeting electricity demand from growing industries while protecting existing customers.
“We should welcome the enormous investment and economic opportunity coming from these industries, but we also have to ensure existing Oklahoma families and businesses aren’t being asked to subsidize that growth,” Warmington said. “OG&E and Google deserve credit for developing an approach designed to accomplish both.”
Warmington said electricity availability will help determine Oklahoma’s ability to attract emerging industries.
“The states capable of providing reliable, affordable and abundant electricity are going to have an enormous advantage in the competition for AI, advanced manufacturing and the next generation of American industry,” he said.
