OGE Energy Not Slowing its Generation, T&D Development

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

OGE Energy is preparing to build out its power-generation and T&D capacity this year, following similar growth in 2025.

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More Capacity Needs on Horizon

OGE Energy Corporation, the parent of regulated electric utility Oklahoma Gas & Electric, notched up more customers and an expanding asset base in 2025, with further growth anticipated for the coming year. Industrial Info is tracking nearly $3 billion worth of active and proposed projects from OGE, more than half of which is attributed to a series of unit additions under consideration.

In a quarterly earnings-related conference call, OGE executives said they expect to see $1 billion of incremental capital expenditures (capex) through 2030; for the coming year, they expect the customer count to grow about 1% and weather-normalized load growth of 4% to 6%. Executives also noted OGE's total weather-normalized retail load has grown more than 24% since 2021.

Among its power-generation developments, OGE is nearing completion of a two-unit replacement at its Tinker Power Station in Oklahoma City, Oklahoma, totaling 96 MW of output for the U.S. military's Tinker Air Force Base. Work on the project started in fourth-quarter 2024, around the same time OGE kicked off a two-unit replacement at its Horseshoe Lake Power Station in Harrah, Oklahoma, which totals 225 MW and is expected to wrap up later this year.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more about these projects--including capacities, investment values and necessary equipment--from detailed reports on the Tinker and Horseshoe Lake projects.

"We will host a ribbon cutting for our new combustion turbines at Tinker Air Force Base," said Robert Sean Trauschke, the chief executive officer of OGE, in the earnings call. "Over the last 10 years, we have built and put into service approximately 1 gigawatt of generation. Tomorrow, we cut the first ribbon on the next 1.3 gigawatts of generation we will build and put into service before the end of the decade."

Trauschke also said OGE is finalizing a 1-gigawatt (GW) contract with a large data center operator--which he referred to as "Customer X" in his remarks--that is not expected to impact 2026 forecasts: "We are finalizing those agreements, and we expect to have that filed with the [Oklahoma Corporation] Commission, along with the large load tariff by midyear."

Executives said they expect OGE's strong underlying retail growth to continue, regardless of data center additions.

By the Numbers

• Nearly $3 billion: Total investment value of OGE's active and proposed projects, according to Industrial Info
• 1.9 GW: OGE's estimated generation capacity needs by 2031
• 1 GW: Value of service contract with unnamed data center that OGE says it is finalizing

T&D Projects Teed Up

During the fourth quarter, OGE issued a draft Integrated Transmission Plan (IRP), identifying roughly 1.9 gigawatts (GW) of capacity needs by 2031. About 800 megawatts (MW) of that increase are driven by policy changes from the Southwest Power Pool (SPP), the regional transmission organization managing much of the central U.S. power grid, including OGE's service territory.

Among its plans for large-scale transmission and distribution (T&D) upgrades, OGE is proposing a 61-mile rebuild of a line from Piedmont to Luther, Oklahoma, which would connect the Mathewson and Redbud substations, respectively. The company also is weighing its options for a proposed, 100-mile new line from Minco to Seminole, Oklahoma, although this project, if approved, likely would not begin construction before 2030.

Subscribers can read detailed reports on the Piedmont-to-Luther and Minco-to-Seminole projects.

"As I look ahead for the remainder of 2026, we will advance our transmission strategy and finalize the opportunities from the SPP ITP, recognizing its critical role in reliability and its growing contribution to long-term investment opportunities," Trauschke said in the earnings call.

OG&E's net income for 2025 was reported to be $470.7 million, a 6.6% increase from 2024. Revenues stood at $3.19 billion, a 9.4% increase. Executives noted the year's strong load growth more than offset the effects of higher depreciation and interest expenses on the company's growing asset base.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for active and proposed projects from OGE.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• OGE expanded its customer base in 2025 and expects to continue the growth this year.
• The SPP's policy changes are fueling changes in OGE's T&D project slate.
• OGE is finalizing a 1-GW contract with a large, unknown data center operator.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).