Enogex, OG&E should extend distribution contract for natural gas, judge recommends
An administrative law judge at the Oklahoma Corporation Commission says the two sister companies of OGE Energy Corp. should extend an agreement for another year pending the completion of a contract review.
A natural gas distribution and storage contract between Oklahoma Gas and Electric Co. and its sister company Enogex should be given a one-year extension, a Corporation Commission administrative law judge recommended Tuesday.
Enogex pipelines and storage units supply the natural gas for six OG&E electricity generating plants. OG&E and Enogex, both subsidiaries of OGE Energy Corp., have been working under a year-to-year contract since 2009, when the original 7-year contract expired.
The one-year extension should give enough time for OG&E and other parties to review a delayed report by a third-party evaluator, Black and Veatch Co., on the appropriateness of the contract. A group of industrial users, the Oklahoma Industrial Energy Consumers, questioned extending the contract in a 2009 review of OG&E fuel usage.
Black and Veatch's report was due in January but was delayed by extensive interviews and a late start on the project, said Kimber Shoop, an attorney for OG&E. The review includes whether OG&E should use a competitive process to choose a gas distribution and storage vendor and if other alternatives are available.