OGE · 10-Q · 2026Q1 · Full report

GHG Rules and Compliance Risk

OGE ENERGY CORP. · 2026-04-29 · Importance 65 · Surprise 60

The EPA's May 2024 power-sector rules (Section 111(d) for existing fossil steam units and revised Section 111(b) for new gas turbines) impose significant obligations: existing coal units that intend to operate beyond 2039 must achieve 90% carbon capture by 2032, and units operating until 2039 must co-fire with natural gas at 40% by 2030. OG&E indicated its existing gas-fired boilers meet the new standards, but baseload new combustion turbines (post-May 23, 2023) may face 90% CO2 capture requirements by Jan 1, 2032 depending on capacity factor categorizations. The rules remain in effect but are subject to litigation and EPA reconsideration (D.C. Circuit abeyance Feb 2025; June 2025 proposed repeal actions), creating regulatory uncertainty and potential material compliance costs if ultimately implemented and not recoverable in rates. Separately, EPA rescinded the 2009 Endangerment Finding in Feb 2026, adding further uncertainty to future GHG regulation for the power sector.

Key facts

• Under the 2024 EPA GHG rules, existing coal-fired units that intend to operate beyond 2039 must achieve 90 percent carbon capture by 2032; units that plan to operate until 2039 must co-fire with natural gas at 40 percent by 2030; units that retire by 2032 are exempt.
• In February 2026 the EPA released a final rule that rescinds the agency's 2009 Endangerment Finding for GHGs.
• OG&E's existing natural gas-fired boilers satisfy the 2024 GHG rules and require no additional compliance measures other than reporting, according to management.

Impact estimates