AEP to move forward on 1,485 MW wind project with Louisiana PSC approval
The North Central Winds Project, consisting of three wind facilities in north central Oklahoma, will be acquired in full by American Electric Power (AEP), following the Louisiana Public Service Commission’s (LPSC) approval of a settlement for Southwestern Electric Power Company’s (SWEPCO) share this week.
SWEPCO and the Public Service Company of Oklahoma are both owned by AEP. AEP intends to benefit both through an approximately $2 billion investment into the project, which will acquire them 1,485 megawatts of wind generation. As the companies service across state lines, however, a variety of approvals were required to move forward.
“Today’s decision by the Louisiana Public Service Commission enables us to move forward with the North Central wind projects at full scale and invest in low-cost wind energy to benefit our customers in Arkansas, Louisiana and Oklahoma,” Nicholas Akins, AEP chairman, president and CEO, said. “As AEP continues to add new clean energy to our generation portfolio, this investment is expected to save our customers approximately $3 billion over the next 30 years while supporting economic development in our communities.”
As part of the latest agreement, SWEPCO intends to issue a request for proposals for work to begin on up to 200 MW of solar generation resources within three years. The LPSC’s approval authorizes SWEPCO to add 810 MW of wind energy for all its customers, including 268 MW for Louisiana customers and the possibility to add 464 MW more if Texas does not also approve SWEPCO’s proposal. Arkansas already approved an option to increase its allocation earlier this month, when it approved the acquisition at large. Oklahoma approved in February, and the Federal Energy Regulatory Commission followed suit. Texas is the one outstanding regulatory review, where SWEPCO continues to lobby for action.
“This is the largest renewable-energy project ever put forward by a Louisiana utility,” Foster Campbell, North Louisiana LPSC Commissioner, said. “I’m proud that the Louisiana Commission is making this move. And I’m happy that it has a Northwest Louisiana solar component to go along with the wind power. Wind and solar should no longer be called ‘alternatives’ – they are now the first choice for many power companies. That’s because they are clean and often cheaper. We owe it to the 231,000-plus SWEPCO customers in Louisiana to make these investments.”
Of the three North Central facilities, one is expected to be completed this year, with the others following by the end of 2021. SWEPCO estimates the wind additions will save customers an estimated $2 billion over the facilities’ 30-year lifespans.
