OG&E terminates AES Shady Point contract

LEFLORE COUNTY, Okla. (KFSM) -- AES Shady Point, a coal-fired electric generation facility located in LeFlore County, has been notified by OG&E that they will not be renewing the remaining years of the existing Power Purchase Agreement (PPA).

“We are extremely disappointed to not have the PPA renewed by OG&E. For the past 28 years, we have been a valued supporter and contributor to the people, communities, businesses, and economy of South East Oklahoma and Western Arkansas. Our hope was to continue to be a significant part of the local area and economy into the future, but we will likely be forced to shut down the AES Shady Point facility on January 15, 2019.”

Shady Point told 5NEWS, the plant has been operating for 28 years and has the capacity to power 230,000 homes and businesses.

“Our people have done an outstanding job maintaining and running the plant in a safe manner, ensuring the needed capacity is provided to OGE.”

The operations at the plant create 83 full-time jobs and roughly 1200 direct and in-direct mining and associated jobs while contributing to the tax base, according to Shady Point.

In total, AES Shady Point combined with local purchasing has an approximate $60 million impact annually on the economy of South East Oklahoma, Shady Point says.

Lundy Kiger, Vice President, at AES Shady Point sent 5NEWS the following statement about OGE’s decision:

“In light of AES Shady Point learning the electric contract with OG&E being terminated. AES Shady Point will participate in an upcoming OG&E Request For Proposals (RFP) that OG&E will issue soon for new electric capacity needed. AES Shady Point will work to put together a proposal to have an opportunity to win the OG&E RFP and for the plant to continue operations. Outside of winning the OG&E RFP, it will be difficult for AES Shady Point as an independent power producer to compete in the SPP Market, and would likely face closing the plant on January 15, 2019. AES Shady Point will continue to look diligently at all possible options available to us now, but we realize those options are limited outside of being successful in the upcoming OG&E RFP.”