Oklahoma coal plant’s future bleak amid cheaper power

POTEAU, Okla. (AP) – The future of an independent coal-fired electricity generator and its about 100 employees in eastern Oklahoma is looking bleak in the face of cheaper power.

The Oklahoman reports that the AES Shady Point plant in Le Flore County could close as soon as January.

Vice President Lundy Kiger said Tuesday that closing may be the 360-megawatt plant’s only option after being notified this month that Oklahoma Gas & Electric Co. won’t proceed with another extension of its long-running power purchase agreement with AES Shady Point.

Energy consultant Loyd Drain says he’s not surprised the larger utility is considering other potential power sources because power production costs are low across the power grid that serves the Great Plains.

Kiger estimates AES Shady Point generates an annual economic impact of up to $48 million in southeastern Oklahoma.