Louisiana PSC approves $4.5 billion wind farm
The Wind Catcher Energy Connection project, a project of Southwestern Electric Power Co. (SWEPCO) received approval from the Louisiana Public Service Commission (LPSC) this week.
This opens the door to the creation of a $4.5 billion, 2,000-megawatt wind farm, along with construction of a 350 mile dedicated power line to carry that generation to Tulsa, Oklahoma, as well as customers in Louisiana, Arkansas, and Texas. While SWEPCO owns the majority (70 percent) of the project, the remaining 30 percent will be owned by the Public Service Company of Oklahoma.
“Wind Catcher is a major investment in clean energy that will produce long-term savings for Louisiana customers and further diversify our energy resource mix,” Nicholas Akins, chairman of SWEPCO’s parent company American Electric Power, as well as its president and CEO, said. “After an extensive review, including the significant performance guarantees that were developed during the process, the Louisiana Public Service Commission’s decision recognizes the benefits Wind Catcher will bring to Louisiana customers.”
As part of the agreement, SWEPCO will cap construction costs, have access to 100 percent of the federal Production Tax Credits possible, and set a minimum annual production. SWEPCO predicts as much as $4 billion to be saved by the wind farm over the next 25 years. These savings will, for customers, be reflected in a reduction of the fuel portion of their bills beginning in 2021. The agreement also guarantees that key components for the wind farm’s turbines will be manufactured in Louisiana.
The Wind Catcher project is still awaiting approval in Texas and Oklahoma, though six parties joined the PSO on a settlement agreement currently awaiting approval by the Oklahoma Corporate Commission.
