The Oklahoma Corporation Commission on Thursday approved Oklahoma Gas & Electric's battery energy storage system proposal in Kay County.
The company testified it needed the resource to meet growing electricity demand. Projections from the Southwest Power Pool, which operates the state's electric grid, show demand is outpacing supply. OG&E estimates it needs significantly more power between now and 2030.
Commissioners Kim David and Brian Bingman voted to approve the project while Commissioner Todd Hiett voted against it. In a dissenting opinion, Hiett wrote the cost recovery was a burden on consumers.
The project is expected to cost about $394 million and could increase average customer bills by about $2.21 starting next year.
"Once complete, the BESS will store energy that may be available for use during extreme weather events or other times of high energy demand," said OG&E spokesperson Dustin Gabus.
Gabus said the average cost could be lower if the utility services more customers and the commission approves its large-load tariff, aimed at high-energy consumers like data centers.
In May, regulators also approved Public Service Company of Oklahoma's proposal to invest in three battery energy storage systems. At the time, Commissioners David and Hiett voted in favor of the proposal while Bingman voted against it because it would be the first time PSO would operate and maintain them.
Battery energy storage systems are important pieces of renewable energy infrastructure, experts say, because they provide steady power flow. While the sun sets and wind doesn't always blow, excess energy from those sources can be stored and used later.
Still, many communities push back against the projects because of battery fire risks even though incidents are rare. According to the federal Environmental Protection Agency, such fires are difficult to extinguish and release harmful gases. Advances in technology have improved the safety of battery energy systems, which are common in states like Texas and California.
OG&E anticipates its battery project to be operational in 2027, and PSO's are expected to be online by 2029.
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