US utility OG&E has secured an approval from the Oklahoma Corporation Commission to recover nearly $400 million invested in developing its Mustang Energy Centre.
The Mustang Energy Centre is a complex comprising seven ultra-modern and efficient natural gas turbines.
The centre has been developed under the utility’s efforts to modernise its grid as well as reduce carbon emissions.
OG&E is expecting to start recovering the investment as from July 1, 2018.
Brian Alford, OG&E spokesman, commented: "We're pleased the various parties led by the Oklahoma Corporation Commission staff recognise through this agreement the real value and strategic importance of the Mustang Energy Centre to our customers, communities and state in the decades ahead.
"It is important to note the agreement also supports regional energy grid reliability and resiliency while ensuring Oklahoma customers receive the benefit of tax savings that resulted from the Tax Cuts and Jobs Act of 2017."
The Mustang Energy Centre project will result in a net rate reduction of approximately $64 million, or $4.44 per month for the average Oklahoma residential customer.
"The decision to install the modern facilities at our existing Mustang Power Plant site was by far the best economic option for our customers. At Mustang, we have an experienced power plant workforce and the necessary infrastructure, ensuring the reliable delivery of energy at critical times."
Upgrades to the power plant will ensure grid reliability, the modern natural gas turbines are capable of moving electricity to the grid in minutes versus hours in the past.
"In the short time the plant has been operational, its units have been called upon more than 700 times to support regional grid reliability, producing more energy than the old plant did in its last full year of operation.”