Southeast Oklahoma Pump Store Project (“The Project”)

The Southeast Oklahoma Pump Storage Project (“Project”) is proposing to design, engineer, and construct a closed loop with 1,200 MW and 1400 MW generating and pumping facility on an upper reservoir, a lower reservoir, and a regulating reservoir in Southeast Oklahoma using the Kiamichi River as the water source. The project includes high voltage transmission lines and a Substation of 40 Miles to SPP’s Valliant 345kv substation and an additional 60 miles to ERCOT ‘s Paris TX, 345kv Substation north of Dallas, TX. The Project is approx. 100 Miles south of Tulsa, Oklahoma, and 140 miles southeast of Oklahoma City.  

The goal of this report is to present the analysis conducted by ZGlobal Inc, which forecasts the Project revenue from 2030 to 2079. The analysis evaluates the Project economic by interconnecting to either ERCOT or SPP and both SPP/ERCOT regions. In April 2023, The Federal Energy Regulatory Commission (FERC) granted a Preliminary Permit to develop a “closed loop” pumped storage hydroelectric (PSH) generating facility located entirely on private land in Pushmataha County, Oklahoma, with the proposed transmission line located entirely on private land in Pushmataha and Choctaw Counties, Oklahoma and Lamar County, Texas (FERC Project No. 14890). FERC has broad authority under the Federal Power Act which governs the construction and operation of nonfederal hydropower projects—preempts all state and local laws concerning hydroelectric licensing. The FPA also includes broad condemnation authority to ensure that owners and operators of FERC-licensed hydropower projects can acquire the property and resources necessary for project development and functioning. Specifically, the FPA grants FERC licensees the ability, if necessary, to condemn “lands or property of others necessary to the construction, maintenance, or operation of any dam, reservoir, diversion structure, or the works appurtenant or accessory thereto. FERC’s broad

authority facilitates obtaining the Hydro license which would include environmental analysis, secure water rights, and transmission right of way all in the same permit. 

The Project company and the development company are organized under these two Limited Liability Companies:  Southeast Oklahoma Power Corporation (“SEOPC”), a corporation registered in the state of Nevada, and the PSH Oklahoma Development Company Inc. (“PSHDC”), a company registered in the state of Texas. The Project requested ZGlobal to perform a life cycle analysis to figure out the Project revenue in each and both ERCOT and SPP regional markets. 

ZGlobal used public information along with proprietary modeling to perform the analysis presented and summarized in this report. The location of the Project is in the vicinity of SPP (south) and ERCOT (north) regions, which provide much optionality. After several feasibility analyses, and discussions with local utilities and regional ISO’s, we concluded that it is workable to assume that the Project could connect to ERCOT only, SPP only; and both regions. The approach used in the analysis is to:(a)  We calculate the project revenues by performing a backcast analysis under each of three interconnection scenarios e.g., interconnection to ERCOT only, SPP only, and both ERCOT and SPP regions (Scenarios 1,2 and 3) from 2019 to 2022. This calculation is aimed at estimating the Project revenues if the project was operating from 2019 to 2022.

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