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PSO Peaking Generation RFP Update: Bid Evaluations Underway, Announcement of Selected Proposal Expected No Later Than May

January 17, 2006

Public Service Company of Oklahoma (PSO) is in the process of evaluating proposals received in response to a company-issued RFP to provide up to 500 megawatts (MW) of peaking generation.  The RFP was issued Sept. 12, 2005 and proposals were due by Dec. 20.

PSO received a total of four (4) proposals totaling more than 1,100 MW.

PSO, with oversight from a neutral third-party monitor, is currently evaluating the proposals to determine which option will best meet the company’s need for additional peaking generation.  Of the proposals received, one was a third-party proposal, which was non-conforming to the RFP requirements.  The remaining three proposals call for the addition of gas turbines at two existing PSO power plants: Riverside Station in Jenks, OK, and Southwestern Station near Anadarko, OK.  The proposal evaluations are on schedule and should be complete on or before the expected date of May 15, 2006.

The RFP calls for the added peaking generation to be online in 2008.

Additionally, PSO has issued an RFP for up to 600 megawatts of baseload generation.  Proposals are due Feb. 16, 2006.  The new baseload generation is to be online in 2011.  Potential bidders are encouraged to review the RFP online at http://www.psoklahoma.com.
 
PSO, a unit of American Electric Power, is an electric utility company serving approximately 511,000 customers in eastern and southwestern Oklahoma.  Based in Tulsa, PSO has more than 4,000 megawatts of generating capacity.

Stan Whiteford
Corporate Communications
918-599-2574

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