Kingston approves OGE contract; vote set for Jan. 21

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The Kingston Town Council held their monthly meeting on June 9, 2020. The council covered multiple housekeeping items at the Tuesday meeting like renewing the city staff’s insurance, renewing the Workman’s Compensation Insurance, and reappointing Jena Newman as the town judge.

Another housekeeping item was presented, but this one is a tad different; it only comes up every 25 years. The town’s contract with Oklahoma Gas and Electric is due for renewal, and Robert Holliday, the Community Affairs Manager for OG&E approached the council about the renewal. He explained what the agreement entails.

“We appreciate the partnership with Kingston that we’ve had for several years,” Holliday said. “This agreement allows OG&E to serve in the streets and alleyways in Kingston.”

Holliday said this agreement is almost identical to the ones offered to other cities. The partnership allots three percent of the funds collected to go to the city. Meaning, the city earns a type of cash back reward.

Holliday said the agreement also places one-half of one-half percent into a Kilowatt “bucket.” These funds are a type of reserves that can be used to cover an unexpected overage. Instead of Kingston having to pay for the overage out of the town’s funds, as long as there are funds in the “bucket,” they can pull from it.

The best part of this agreement is it can be done without a tax increase. Holliday said that OG&E is the lowest energy provider in the nation.

The council approved the agenda item. Now, the agreement must go to the next phase before being enacted – the residents must vote on it. That vote is scheduled for January 12, 2021.