OG&E Partners with Google for New Data Center Electric Supply Agreements

OG&E Partners with Google for New Electric Supply Agreements

Today marks a significant milestone as OG&E, the operating subsidiary of OGE Energy Corp., confirms its collaboration with tech giant Google. This partnership will enable OG&E to power three new data centers recently announced by Google in Muskogee and Stillwater, Oklahoma. This agreement not only aims to bolster economic development in the region but also ensures that current customers benefit from the growing demand while maintaining some of the lowest electric rates in the country.

The data centers represent a vital addition to the electric grid, crucial for supporting the technological demands that shape our day-to-day lives. From online banking to healthcare services, these centers will help power operations that are essential to billions of users globally.

In reaching this agreement, OG&E has taken considerable steps to protect its existing customers from any potential financial burden. Google has committed to cover 100% of the costs associated with connecting the data centers to the electrical grid. Additionally, Google will be responsible for all contracted costs tied to energy supply, regardless of its actual energy consumption. This includes contributions to the power generation needed to facilitate these facilities.

Sean Trauschke, Chairman, President, and CEO of OGE Energy Corp. stated, "OGE is pleased to support Google and together advance growth in our home state, ensuring our current customers benefit from the data center expansion. This agreement sets a precedent for future partnerships and aims to provide a new large-load tariff that ensures comprehensive financial protections for existing customers against growing energy demands."

Oklahoma boasts some of the most competitive electricity rates available, with average residential rates sitting 19% below the regional average and 34% lower than the national average. OG&E has continuously remained focused on maintaining a rate structure that fosters economic growth and attracts new investments in both Oklahoma and Arkansas.

In terms of energy supply innovation, Will Conkling, Google's Director of Energy and Power in the Americas, emphasized the significance of this partnership. He noted, "Energy innovation and ratepayer protection go hand in hand in the communities where we operate data centers across Oklahoma and around the world. This landmark partnership with OGE demonstrates our commitment to safeguarding affordability for our Stillwater and Muskogee neighbors, adding new generation resources to the grid while providing guaranteed upfront funding to cover the cost of building new infrastructure."

As part of the agreement, Google is set to include power generation capacity from two solar facilities that are currently under construction, further enhancing the renewable energy landscape in Oklahoma. This addition aligns with the state's ongoing focus on promoting sustainable energy solutions.

Governor Kevin Stitt of Oklahoma reiterated the state's commitment to supporting infrastructure developments that keep energy costs manageable for families and small businesses. He highlighted that OG&E's partnership with Google accentuates Oklahoma's strategic advantages concerning job creation and economic diversification.

The Electric Service Agreements, coupled with Capacity Purchase Agreements, will soon be submitted for review to the Oklahoma Corporation Commission (OCC). Final approval from the OCC is required for OG&E to proceed with supplying power to these sites.

For an in-depth look at OG&E's new contract with Google and strategies for servicing high-electricity demand customers, individuals can visit OGE.com/datacenters.