Google pact with OG&E locks in power for Oklahoma data centers
Oklahoma Gas & Electric announced a downward adjustment to its fuel charge, which will lead to lower electricity bills for Oklahoma customers this summer due to falling wholesale fuel costs and over-collected balances. This adjustment is distinct from a separate long-term power supply agreement OG&E has with Google for data centers in Oklahoma. The Oklahoma Corporation Commission recently approved an interim base rate increase.
Oklahoma Gas & Electric (OG&E) announced a downward adjustment to its fuel charge, expected to reduce the average residential electricity bill by approximately $14.75 this summer, effective from June or July billing cycles. This reduction is primarily due to falling wholesale fuel costs and an existing over-recovered fuel balance.
OG&E spokesperson Dustin Gabus stated that the new factor accounts for a projected $84 million decline in future fuel purchases and an estimated $92 million in over-recovery as of April 26. The utility clarifies that the fuel charge is a pass-through item, reflecting the cost of natural gas without markup, and is distinct from its base rate. The Oklahoma Corporation Commission previously approved an interim base rate increase of about 6.6% for residential bills in March 2025.
Contextually, OG&E has also entered into a separate large-scale power supply agreement with Google to serve new data centers in Oklahoma. However, the company emphasized that these routine fuel charge adjustments reflect near-term market conditions and are separate from the long-term energy procurement contracts.