Oklahoma Corporation Commission Approves Order; Security Rider Also Approved

OKLAHOMA CITY, Dec. 21 /PRNewswire-FirstCall/ -- OGE Energy Corp. (NYSE: OGE) announced today that the Oklahoma Corporation Commission has approved final orders in two regulatory cases involving OG&E Electric Services, OGE Energy's utility subsidiary:

• A Cogeneration Credit Rider that will lower electric bills by about $80 million per year for OG&E customers. This provides $55 million of new savings and ensures the continuation of $25 million in bill reductions that started in 2004.
• A Security Rider enabling OG&E to recover the cost of approved electric system upgrades to guard against possible attack.

OG&E said both orders are integral to the company's ongoing Customer Savings and Reliability Plan, which originated with a 2002 Commission decision that led to the company's acquisition of the McClain power plant, completed earlier this year. The $80 million annual reduction in OG&E customers' electric bills approved today is in addition to the 2002 rate order's requirement of at least $75 million in customer savings over a three-year period following OG&E's acquisition of McClain.

In 2005, OG&E expects to file an application with the Oklahoma Corporation Commission to have the plant included in the company's regulated rate base. OG&E has not had an increase in base electric rates since 1987.

The Cogeneration Credit Rider allows OG&E to pass on the benefits received from the renegotiated contract with Power Smith Cogeneration in Oklahoma City and the scheduled step-down of electric capacity payments to AES Shady Point, operator of a cogeneration plant in southeastern Oklahoma. The average OG&E residential customer will see a reduction of about $5 per month from the Cogeneration Credit Rider, effective with the next billing cycle in January.

"Our Customer Savings and Reliability plan enables OG&E to make investments in the electric system with minimal impact on customers' monthly electric bills," said OG&E spokesman Brian Alford. "The savings from the Cogeneration Credit Rider, combined with the savings provided by the McClain plant, will help offset any rate increase we need to include the McClain plant, security enhancements, and other system reliability improvements in our rate base."

The Security Rider recognizes the benefit of protecting key electric facilities and systems against sabotage or terrorist attack. The order approved today allows OG&E to collect from customers certain approved costs for security upgrades. After all of the planned projects are completed, the impact on the average residential customer's electric bill will be about 37 cents per month.

OG&E serves approximately 733,000 customers in a service area spanning 30,000 square miles in Oklahoma and western Arkansas. OGE Energy also is the parent company of Enogex Inc., a natural gas pipeline business with principal operations in Oklahoma and Arkansas.

SOURCE OGE Energy Corp.
CONTACT: Brian Alford, +1-405-553-3187, or financial, Todd Tidwell, +1-405-553-3966, both of OGE Energy Corp