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Dec 16, 2019

AEP utilities to buy three wind farms in Oklahoma

Kallanish Energy | December 16, 2019

An Oklahoma-based utility has reached a settlement with state regulators and others to add 675 megawatts of wind energy in the next two years, while its sister utility will add an additional 810 MW of wind power.

The agreement will enable the Public Service Co. of Oklahoma (PSO) and Louisiana-based Southwestern Electric Power Co. to purchase three wind facilities being developed in Oklahoma, Kallanish Energy reports.

Both companies are subsidiaries of Ohio-based American Electric Power. The power will go to customers in Arkansas, Louisiana, Oklahoma and Texas.

The agreement was also approved by the Public Utilities Division staff of the Oklahoma Corporation Commission, the Oklahoma Attorney General’s office, customer groups and other parties. The deal still needs other regulatory approvals.

“The settlement agreement puts PSO a step closer to adding more low-cost Oklahoma wind energy to its portfolio,” said Peggy Simmons, PSO president and chief operating officer, in a statement.

The agreement would enable PSO and Southwestern Electric Power to buy the North Central Energy facilities being developed in seven counties in north-central Oklahoma: Alfalfa, Blaine, Custer, Garfield, Kingfisher, Major and Woods.

Under the plan, SWEPCO would own 55% of the projects with PSO holding the remaining 45%. The investment together would total about $2 billion.

The new wind farms, being developed by Invenergy, are expected to begin service in 2020 and 2021. They would produce about 5.7 megawatt-hours annually.

The projects include a 999 MW wind facility being built north of Weatherford, a 287 MW wind facility under construction southwest of Enid, and a 199 MW facility being built south of Alva.

The two utilities said ownership is projected to save customers more than $3 billion over the 30 years of wind farm operation.

Read more here.