OGE Energy CEO Pete Delaney: 'Moving Ahead With Projects That Are Important for Our Customers'
May 21 2009 - 11:04AM
PR Newswire (US)
Dividend declared, directors elected at annual shareowners' meeting
OKLAHOMA CITY, May 21 /PRNewswire-FirstCall/ -- Amid the
uncertainties of economic downturn, volatile commodity prices,
increasing infrastructure needs and ever more stringent
environmental regulations, OGE Energy Corp. (NYSE: OGE) is well
prepared to manage through this challenging environment, the
company's chairman, president and CEO, Pete Delaney, told
shareowners gathered today for their annual meeting. "We are moving
ahead with projects that are important for our customers," Delaney
said. "And as our company has done for more than a century, we are
taking a conservative and prudent approach to managing our
business." Delaney noted that while much has changed in the 12
months since OGE shareowners last met, "our goals and plans for
achieving them have not." He pointed to significant investments in
the renewable energy to come from new wind farms, and the
construction of new transmission lines to bring that energy from
remote locations to population centers. These projects continue. He
outlined the role of demand-management and "smart grid" programs
that could help the company avoid adding any new fossil-fuel
generation at least until 2020. "While these initiatives are the
key to serving our customers effectively, the recovery of our past
investments is required for OG&E to commit future capital and
to earn a reasonable return for our shareowners," Delaney said,
noting that OG&E, the company's regulated electric utility, has
invested about $900 million since its last rate case in 2005 that
is not reflected in today's electric rates. OG&E has requested
regulatory approval of a rate increase in Oklahoma. A hearing is
expected this summer, with a decision by late August. OGE Energy's
midstream pipeline business, Enogex, also is weathering the
economic downturn. "Enogex remains well positioned to serve its
customers and resume its growth when producer activity increases in
the Mid-Continent as prices recover," Delaney said. "The business
is sound; it has ample liquidity, and good cash flow." In voting
announced at the annual meeting, OGE Energy shareowners ratified
the appointment of Ernst & Young LLP as the company's principal
independent accountants for 2009 and elected four members of the
company's board of directors to three-year terms: -- Wayne H.
Brunetti, retired chairman and CEO of Xcel Energy Inc., was
elected. He has been a director of OGE Energy and of OG&E since
August 2008. -- John D. Groendyke, chairman and CEO of Groendyke
Transport Inc., was re-elected. He has been a director of OGE
Energy and of OG&E since January 2003. -- Robert Kelley,
president of Kellco Investments Inc., was re-elected. He has been a
director of OGE Energy and of OG&E since December 1996. --
Robert O. Lorenz, retired partner of the Arthur Andersen accounting
firm, was re-elected. He has been a director of OGE Energy and of
OG&E since July 2005. OGE Energy shareowners also considered a
shareowner proposal requesting that the Board of Directors take the
steps necessary to eliminate classification of terms of Board
members to require that all Directors stand for election annually.
The proposal received a majority of the votes cast, but less than a
majority of the outstanding shares and less than the 80 percent of
the outstanding shares required by the company's articles and
by-laws to change the classified makeup of the Board. Also today,
the OGE Energy Corp. Board of Directors declared a regular
quarterly dividend of $0.355 per common share of stock, to be paid
July 30, 2009 to shareowners of record on July 10, 2008. The
dividend was unchanged from the previous quarter. OGE Energy is the
parent company of Oklahoma Gas and Electric Company (OG&E),
which serves more than 772,000 customers in a service territory
spanning 30,000 square miles in Oklahoma and western Arkansas, and
of Enogex LLC, a midstream natural gas pipeline business with
principal operations in Oklahoma. Some of the matters discussed in
this news release may contain forward-looking statements that are
subject to certain risks, uncertainties and assumptions. Such
forward-looking statements are intended to be identified in this
document by the words "anticipate", "believe", "estimate",
"expect", "intend", "objective", "plan", "possible", "potential",
"project" and similar expressions. Actual results may vary
materially. Factors that could cause actual results to differ
materially include, but are not limited to: general economic
conditions, including the availability of credit, access to
existing lines of credit, actions of rating agencies and their
impact on capital expenditures; the Company's ability and the
ability of its subsidiaries to access capital markets and obtain
financing on favorable terms; prices and availability of
electricity, coal, natural gas and natural gas liquids, each on a
stand-alone basis and in relation to each other; business
conditions in the energy and natural gas midstream industries;
competitive factors including the extent and timing of the entry of
additional competition in the markets served by the Company;
unusual weather; availability and prices of raw materials for
current and future construction projects; federal or state
legislation and regulatory decisions and initiatives that affect
cost and investment recovery, have an impact on rate structures or
affect the speed and degree to which competition enters the
Company's markets; environmental laws and regulations that may
impact the Company's operations; changes in accounting standards,
rules or guidelines; the discontinuance of regulated accounting
principles under SFAS No. 71; creditworthiness of suppliers,
customers and other contractual parties; the higher degree of risk
associated with the Company's nonregulated business compared with
the Company's regulated utility business; and other risk factors
listed in the reports filed by the Company with the Securities and
Exchange Commission including Risk Factors and Exhibit 99.01 to the
Company's Form 10-K for the year ended December 31, 2008.
DATASOURCE: OGE Energy Corp. CONTACT: Brian Alford,
+1-405-553-3187, or Financial, Todd Tidwell, +1-405-553-3966, both
of OGE Energy Corp. Web Site: http://www.oge.com/
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