OKLAHOMA CITY – OG&E Electric Services today announced a reduction in fuel costs for its Oklahoma customers effective in July, which will result in summertime savings of $22 per month for a home consuming 1,400 kilowatt-hours of electricity.

In a filing with the Oklahoma Corporation Commission, OG&E indicated it will reduce the fuel cost adjustment on customers' monthly electric bills from 1.76 cents per kilowatt-hour to 0.22 cents.

“We are pleased to be able to reduce our fuel costs just in time for the summer cooling season,” said OG&E spokesman Brian Alford. “Fuel is a major component of a monthly electric bill, and this is where the savings will occur. A second component, OG&E's electric rates – which pay the cost of operating the electric system – are not changing. Another factor is the amount of electricity each customer consumes, which can be controlled through a wide variety of energy-conservation measures that we encourage our customers to consider.”

Under longstanding regulatory rules in Oklahoma and Arkansas, OG&E makes no profit on the cost of fuel used in the process of generating electric power. Fuel costs are periodically adjusted in keeping with these rules, as OG&E purchases fuel in sometimes-volatile energy markets.

The fuel-cost reduction announced by OG&E today is prompted in large part by a significant decline in natural gas prices in recent months, and projected future natural gas prices for the remainder of 2006.

OG&E, serving nearly 750,000 customers in a service area spanning 30,000 square miles in Oklahoma and western Arkansas, is a subsidiary of OGE Energy Corp. (NYSE: OGE), which also is the parent company of Enogex Inc., a natural gas pipeline business with principal operations in Oklahoma.

Contact: Brian Alford (405) 553-3187