...Scrubbers Installation Approved: On April 28, 2016 the Oklahoma Corporation Commission (OCC) approved Oklahoma Gas & Electric Co.'s (OG&E) request to install dry scrubbers on two units of its Sooner power generating plant. Fitch Ratings views the decision favorably, as it removes substantial uncertainties associated with complying with Environmental Protection Agency (EPA) deadline regarding regional haze by 2019, although the capital cost will be considered in a later proceeding. Supportive Regulations: Notwithstanding the prolonged process in OCC's reviewing and rejecting the Environmental Compliance Plan (ECP), Fitch continues to view the overall regulatory compact in Oklahoma as constructive from a credit perspective. OG&E enjoys various recovery mechanisms, including timely recovery of fuel and purchased power costs, pre-approval of projects, and storm and demand program riders. Oklahoma legislation allows utilities to recover environmental compliance costs incurred to meet both state...
