SEC Filings

OGE Energy's Utility Seeks Approval For A $1.7 Billion Gas Plant As Parent Plans Up To $750 Million In Stock Sales

OG&E filed for a 755 MW Horseshoe Lake unit, asked FERC for a $1.5 billion borrowing ceiling, and the parent expects to set up an equity program.

OGE Energy's Oklahoma utility filed on October 27 for approval of a natural gas plant expected to add about 755 MW at a cost of roughly $1.7 billion, the company said in its quarterly report on Wednesday. The same report says the parent expects to set up an at-the-market equity program of up to $750 million.

A new gas unit at Horseshoe Lake

OGE Energy is a holding company whose main investment, OG&E, generates, transmits, distributes and sells electricity in Oklahoma and western Arkansas. OG&E asked the Oklahoma Corporation Commission to preapprove a combined cycle gas unit, Unit 15, at its existing Horseshoe Lake plant.

The utility's 2026 resource plan puts its capacity need at 1,922 MWs by the 2031/2032 winter season. Responses to its 2026 solicitation are still under review, and more preapproval filings could come starting in the fourth quarter of 2026.

The project sits on top of a capital plan that now totals $7,840 million for 2026 through 2030, including $995 million for generation capacity projects. Further capacity projects will be added when final preapproval orders arrive.

Debt, equity and a lower payout target

OG&E asked the FERC to let it borrow up to $1.5 billion short-term for 2027 and 2028. Its current authority is $1.0 billion through December 31, 2026, as the prior quarter's report also showed, and it expects approval before that expires.

In September, OGE Energy set a dividend payout target of 55 percent to 60 percent. It also has forward equity sale agreements on 4,613,372 shares at an initial $41.71 each, which it can settle on or before May 27, 2027. In April, OG&E sold $350.0 million of 5.90 percent senior notes.

The new equity program would add to a share base that 2026 guidance puts at about 207.3 million average diluted shares.

Earnings and the rate case

Net income rose to $316.2 million, or $1.52 per diluted share, in the third quarter, from $231.3 million, or $1.14, a year earlier. The company attributed the gain mainly to stronger sales in much warmer weather, and now expects 2026 earnings of $2.62 to $2.68 per diluted share.

OG&E's Oklahoma rate request seeks $395.0 million, filed September 30. It covers about $2.4 billion of plant investment since the last review.

The next dated markers are in November and December: FERC responses on large-load integration are due November 20, and answers to those responses December 21.