OGE Energy Corporation (OGE) filed an application with the Oklahoma Corporation Commission seeking approval to install smart meters across its Oklahoma service area. If approved, the proposal would increase the average customer’s electric bill by about $2 per month for the next three years. The hike has been partially subsidized by $130 million federal stimulus grant received by the company.
OGE Energy plans to avoid addition of new fossil fuel generation units until fiscal 2020. The company plans to install more than 600,000 smart meters in its Oklahoma service area over the next three years. The company is focusing on the installation of Smart meters which will help efficient utilization of electricity. The savings on electricity will help OGE Energy to defer expansion of its generation capacity in the short run.
OGE Energy registered strong fourth quarter earnings per share of 35 cents, topping the Zacks Consensus EPS estimate of 30 cents and the year-ago quarterly EPS of 23 cents. The uptrend was reflected in fiscal 2009 results also where the EPS of $2.66 comfortably beat the fiscal 2008 EPS of $2.49.
OGE Energy regulated utility assets operate in the strong Oklahoma economy while its unregulated natural gas business focuses on fixed fee contracts. The high dividend yield company expects its annual long-term earnings growth rate in the range 5% – 7% from 2010 through 2012. The company expects its fiscal 2010 earnings in the range of $2.70 – $2.95 per share, in line with the Zacks Consensus Estimate of $2.90.
OGE Energy is a public utility holding company. Its principal subsidiary is Oklahoma Gas and Electric Company (OG&E), a regulated public utility generating, transmitting and distributing electricity to retail and wholesale customers in Oklahoma and western Arkansas.
The other subsidiary is Enogex Inc., which owns and operates natural gas transmission and pipelines, has interests in several gas processing plants, markets electricity, natural gas and natural gas liquids and invests in crude oil and natural gas operations.
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