OGE Energy : Redacted Direct Testimony of Matthew Schuermann
OGE
Published on 05/19/2025 at 17:05
IN THE MATTER OF THE APPLICATION OF )
OKLAHOMA GAS AND ELECTRIC COMPANY ) Case No. PUD2025-000038 FOR COMMISSION PREAPPROVAL OF NEW )
GENERATION CAPACITY PURSUANT TO ) 17 O.S. ยง 286(C) AND RIDER COST RECOVERY )
Redacted Direct Testimony of
Matthew J. Schuermann on behalf of
Oklahoma Gas and Electric Company
May 19, 2025
Matthew J. Schuermann
Direct Testimony
Q. Please state your name and business address.
A. My name is Matthew J. Schuermann. My business address is 321 N. Harvey, Oklahoma
City, Oklahoma, 73102.
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Q. By whom are you employed and in what capacity?
A. I am employed by Oklahoma Gas and Electric Company ("OG&E" or "Company") as the
Vice President of Power Supply Operations. 8
Q. Please summarize your educational background and professional qualifications.
A. I earned a Bachelor of Science Degree in Mechanical Engineering from the University of
Oklahoma (2002) and a Master of Business Administration from Oklahoma State
University (2008). I began my career with OG&E in 2000 as an engineering intern and
began full-time employment in 2002 as a plant engineer. I have held various roles in the
organization, with most being in leadership of the areas of operations, engineering, and
planning for the generation fleet of the company. In my current position I oversee the
operations and maintenance of all generation assets for the company as well as the long-
term resource planning and supply adequacy strategies. 18
Q. Have you testified previously before this Commission?
A. Yes, I have.
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Q. What is the purpose of your testimony?
A. The purpose of my testimony is to discuss the contracts that resulted from the winning bids
selected from OG&E's 2024 All-Source Request for Proposal ("RFP"). Specifically, my
testimony describes the selected resources, the negotiation process, and the costs associated
with the contracts for the selected resources. I will describe some of the benefits of each
resource and explain how the selected portfolio of resources is the best choice for
customers.
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Q.
What were the results of the RFP process?
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A.
At the completion of the RFP process, OG&E selected seven projects to begin contract
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negotiations. Of those seven selected projects, three have withdrawn their bid pricing,
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three have moved on to the contract stage and are the subject of this pre-approval case, and
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one is still in negotiations with OG&E. Due to the timing necessary for pricing to hold and
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to ensure resources are available when they are needed, and the uncertainty regarding
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ongoing negotiations, OG&E is proceeding with the three projects with which it has
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reached agreement.
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Q.
Which resources from the All Source RFP is OG&E requesting pre-approval for in
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this case?
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A.
OG&E is requesting pre-approval in this case for three of the bids that were selected for
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negotiation out of the RFP process: The Kiamichi Capacity Purchase Agreement ("CPA")
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is with Tenaska from an existing natural gas facility; the Black Kettle CPA is with Plus
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Power from a to-be-constructed battery storage facility; and Horseshoe Lake 13 & 14 is
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the construction of new natural gas generating units. As described by OG&E witnesses
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Riley and Shoop, these three projects will not satisfy all of OG&E's capacity needs but are
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a necessary step towards filling OG&E's capacity shortfalls in the coming years.
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RFP EVALUATION AND SELECTIONS
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Q.
What types of the resources were selected for negotiation out of the RFP process?
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A.
OG&E selected the top 3 solar projects identified in the RFP analysis which totaled 900
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MWs of nameplate solar capacity, the top 2 battery projects which totaled 400 MWs of
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capacity, the top ranked existing thermal project which was 450 MWs of capacity, and the
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top ranked new build thermal project which was around 450 MWs of nameplate capacity.
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This selection is consistent with OG&E's approach to Fuel and Technology Diversity as
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described in OG&E's 2024 IRP.
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Q.
How did the selected projects score in the RFP evaluation?
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A.
The selected projects scored well in the RFP evaluation. The selections include the top
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five ranked projects based on the 2024 All Source RFP's combined Quantitative and
Qualitative Scoring methodology, as well as highly ranked projects with timing matched
to OG&E's capacity needs and that provide a diverse portfolio. 3
Q. Which projects were selected for negotiation out of the RFP?
A. The projects selected for negotiation are highlighted in the table below.
Q. How much accredited capacity would the selected projects provide by year as they
A. The profile of additions is shown in the table below for the selected projects.
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Q.
Why were these projects selected for negotiation?
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A.
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Q.
Why were the other projects shown in the table not selected for negotiation?
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A.
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Disclaimer
OGE Energy Corporation published this content on May 19, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 19, 2025 at 21:04 UTC.