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OGE Energy Corp. 3
Peter B. Delaney
Chairman, President and Chief Executive Ofcer
and launched demand-side management programs –
including SmartHours®– for business and residential
customers. We now have more than 81,000, or about
10 percent of our customer base enrolled.
We’re very proud of these awards, but we won’t
rest on our laurels. Our vision states that we aspire to be
the industry leader, in a class of our own, not simply an
industry leader among others. There are challenges, for
sure, but we stand ready to meet them and turn them
into opportunities.
Balancing priorities The regulatory outlook brings
stricter environmental standards for utilities that use
fossil fuels to generate electricity. Like electric utilities
across the country, OG&E has been battling to hold the
line against substantial rate increases in the face of fed-
eral mandates that we believe are unreasonable. One
such mandate is regarding the issue of Regional Haze,
which addresses visibility improvement in certain national
parks and wilderness areas throughout the United States.
Despite Oklahoma’s sensible state plan, the Environmental
Protection Agency imposed a cost-ineffective plan on
OG&E and the state of Oklahoma that would cost more
than $1 billion. OGE and the Oklahoma attorney general
fought back in the courts.
Last summer, the U.S. 10th Circuit Court of Appeals
ruled against OG&E in a 2-1 decision, stating that the
EPA’s plan to address Regional Haze was necessary to
appropriately address the visibility issue. As this report
goes to press, we, along with the Oklahoma attorney
general, await a decision from the U.S. Supreme Court
as to whether it will review that ruling.
While OG&E always has and will continue to comply
with all regulations, we believe a realistic approach to
protecting the environment must address other issues
that are important to OG&E customers, such as afford-
ability and reliability. Our rates are currently more than
20 percent below the national average, and we will
continue to focus on protecting customers’ bills.
If we are unsuccessful in our efforts to comply in
such a way that protects our customers’ bills, we will
have 55 months to install costly environmental controls
on some of our coal units. As always, we seek a fair
outcome that keeps all stakeholders’ interests in mind.
Focus Forward Even in the midst of challenges and
uncertainty, OGE is performing well. It’s the result of
deliberate planning and forward thinking. We know
our track record of success doesn’t guarantee future
performance. But we know what kind of company we
are and that we intend to remain successful, for our
members, our customers and our shareholders. We are
poised to keep improving value for our customers with
new products and services that revolutionize home and
business energy usage management and customer
experiences. And our sight remains focused on higher
earnings and dividend increases for our shareholders.