PSO breaks ground on 450 MW gas plant after clearing county zoning fight

Overview

Updated 1 hour ago

Public Service Company of Oklahoma began construction on two natural gas turbines at its Northeastern Energy Campus near Oologah, about 30 miles northeast of Tulsa. The units, Northeastern 5 and 6, add 450 megawatts of dispatchable power, with commercial operation targeted for December 2028.

Reaching the groundbreaking took a year of litigation. Rogers County's Board of Adjustment denied PSO a zoning exception in November 2025, PSO sued, and a judge granted the utility a land-use exemption in June 2026. State regulators had already approved the spending in May, with conditions meant to keep household bills insulated from data-center demand.

Why it matters

The 450 megawatts are meant to meet Oklahoma demand forecast to grow 146% by 2036, and customers start paying before the power flows.

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Key Indicators

450 MW

Capacity of Northeastern Units 5 and 6

Two GE gas turbines in simple-cycle configuration.

$539.8M

Estimated capital cost of the gas units

Figure PSO cited in its Rogers County zoning dispute and CWIP request.

$1.2B

OCC-approved generation portfolio

Covers two gas units, three battery storage systems and power purchase agreements.

146%

Forecast load growth by 2036

PSO's 2026 planning refresh projects 6,456 MW of added load versus its 2024 forecast.

December 2028

Target commercial operation date

PSO's stated in-service date for both new turbines.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Leigh Anne Strahler

President and chief operating officer, Public Service Company of Oklahoma

Leading PSO through the Oologah build

Bryan Walsh

Vice president of generation transformation, PSO

Overseeing the gas expansion

David Kim

Commissioner, Oklahoma Corporation Commission

Voted to approve PSO's portfolio and CWIP financing

Organizations Involved

Public Service Company of Oklahoma

Investor-owned electric utility

Building 450 MW of new gas capacity at Oologah

A subsidiary of American Electric Power that supplies electricity across eastern and southwestern Oklahoma.

Oklahoma Corporation Commission

State utility regulator

Approved PSO's portfolio and construction-work-in-progress financing

The three-member state agency that sets rates and grants preapproval for Oklahoma utility generation projects.

Rogers County Board of Adjustment

County zoning board

Denied PSO's special exception; overruled by a district judge in June 2026

The county panel that reviews requests for exceptions to local zoning rules, including for land in unincorporated Rogers County.

Energy Transfer

Midstream pipeline company

Selected to deliver natural gas to the new units

A pipeline operator chosen through competitive bidding to supply fuel to Northeastern Units 5 and 6.

Timeline

October 2024 November 2026

8 events Latest: Today

Tap a bar to jump to that date

November 2026
PSO breaks ground on Northeastern Units 5 and 6
Today Construction

PSO announced the start of construction on Nov. 9; the 450 MW project is due online in December 2028.
Today
June 2026
Judge grants PSO a land-use exemption
Legal

The ruling clears the way for the gas units and battery storage at the site.
June 2026
May 2026
OCC approves $1.2 billion portfolio and CWIP
Regulation

Commissioners vote 2-1 to preapprove the projects and allow billing during construction.
May 13th, 2026
March 2026
County moves to dismiss; PSO claims a regulatory taking
Legal

PSO argues the denial interferes with its property and seeks nearly $540 million in compensation.
March 24th, 2026
January 2026
PSO sues Rogers County
Legal

PSO asks a district judge to block the county's zoning restrictions on the plant site.
January 2026
November 2025
Rogers County denies the zoning exception
Legal

The Board of Adjustment rejects PSO's special exception for the $539.8 million project.
November 18th, 2025
September 2025
PSO announces two gas turbines for Oologah
Announcement

The utility discloses plans to add 450 megawatts at its existing Northeastern campus.
September 2025
October 2024
PSO issues its baseline resource plan
Planning

The 2024 integrated resource plan sets the forecast that the 2026 refresh later revises sharply upward.
October 2024

Scenarios

Both Oologah turbines enter service in December 2028

Likely Resolves by Jan 31, 2029

Discussed by: PSO project filings and local reporting on the construction schedule

PSO has given a December 2028 commercial operation date since it announced the project, and the zoning ruling removed the main permitting obstacle. If construction proceeds on that schedule, the units would be available for the summer 2029 peak and the winter after it.

Construction slips past 2028 and the cost estimate rises

Possible Resolves by End of 2029

Discussed by: Oklahoma Energy Today, which has tracked the project's cost and legal history

Gas turbine supply chains and interconnection work have stretched schedules for other utilities. A slip would push the 450 megawatts past the 2029 peak and reopen the question of whether the $539.8 million estimate holds, especially with CWIP billing already tied to the project.

A court challenge halts CWIP cost recovery

Uncertain Resolves by End of 2027

Discussed by: Oklahoma Energy Today, which reported in May 2026 that a constitutional challenge to the financing method was expected

Construction-work-in-progress lets PSO bill customers for the gas units before they generate power. A successful constitutional challenge would cut off that cash flow mid-build and force PSO to carry the cost until the units enter service, changing who bears the financing risk.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

February 2021

Winter Storm Uri (2021)

A prolonged cold snap pushed the Southwest Power Pool into controlled outages, and millions of homes and businesses across Texas and the Southern Plains lost power. Gas supply and generating equipment failed in conditions the regional grid had not planned for.

Then

Grid operators ordered rolling blackouts across the SPP footprint, and Oklahoma utilities faced scrutiny over fuel security.

Now

Utilities and regulators put more weight on dispatchable, on-site generation and weatherized fuel supply when planning new capacity.

Why this matters now

PSO cites reliability during extreme spring and winter weather as a main reason for adding gas turbines at an existing site rather than relying on wind and storage alone.

May 2026

Oklahoma's House Bill 2992 (2026)

Oklahoma lawmakers passed legislation directing the Corporation Commission to protect household rates as large loads such as data centers connect to the grid. Governor Kevin Stitt signed it the same week the commission voted on PSO's portfolio.

Then

The commission attached conditions to its PSO approval, including annual rate adjustments as new demand arrives and separate terms for data-center connections.

Now

Cost allocation between households and large industrial customers became an explicit part of every new generation approval in the state.

Why this matters now

The Oologah build is one of the first projects approved under the new cost-allocation rules, so who pays for the 450 megawatts is now a regulatory question, not just a construction one.