AEP To Proceed With Full $2 Billion Investment In Wind Projects To Benefit Customers In Three States, Despite Texas Commission Decision

Rhea-AI Summary

American Electric Power (AEP) will proceed with a $2 billion investment in renewable energy projects totaling 1,485 MW, despite the Texas Public Utility Commission's denial of a plan for Southwestern Electric Power Co. (SWEPCO) to add 309 MW of wind energy. AEP has secured necessary regulatory approvals in Arkansas, Louisiana, and Oklahoma, which will help save customers approximately $3 billion over the next 30 years. The North Central wind projects include three facilities in Oklahoma, expected to be completed in the next two years.

Positive

• AEP's $2 billion investment in 1,485 MW of renewable energy.
• Projected savings of $3 billion for customers over 30 years.
• Regulatory approvals received in multiple states for wind projects.

Negative

• Texas commission denied approval for SWEPCO's 309 MW wind plan.

COLUMBUS, Ohio, July 2, 2020 /PRNewswire/ -- While the Public Utility Commission of Texas today denied approval of Southwestern Electric Power Co.'s (SWEPCO) plan to add 309 megawatts (MW) of wind energy to serve Texas customers, American Electric Power (NYSE: AEP) has received the other regulatory approvals needed to acquire the entire planned 1,485 MW of North Central wind generation. AEP is investing approximately $2 billion to bring new renewable energy to Public Service Company of Oklahoma (PSO) customers and SWEPCO customers in Arkansas and Louisiana.

"We are disappointed that our SWEPCO customers in Texas will not be able to benefit from the low-cost wind energy the North Central projects will provide," said Nicholas K. Akins, AEP chairman, president and chief executive officer. "The regulatory approvals we have received in Arkansas, Louisiana, Oklahoma and at the Federal Energy Regulatory Commission will allow us to move ahead with the North Central wind projects at full scale, saving our customers in those states approximately $3 billion over the next 30 years. As we transition to a clean energy future, our investment in the North Central wind projects supports economic and business development in our communities and will help our customers meet their renewable energy goals."

North Central includes three wind generation facilities located in north central Oklahoma. AEP's SWEPCO and PSO operating units announced July 15, 2019, that they would seek regulatory approvals to purchase the three wind projects. The projects are expected to be completed over the course of the next two years.

The Arkansas and Louisiana Public Service Commissions approved the projects in May, and PSO received approval from the Oklahoma Corporation Commission in February. The Federal Energy Regulatory Commission also approved the acquisitions in February.

PSO will acquire 675 MW of the North Central wind projects to serve its customers in Oklahoma. The Arkansas and Louisiana commissions approved options to increase their allocations of wind energy if another state did not approve the projects. With these options, an estimated 464 MW will be allocated to Louisiana and 268 MW to Arkansas, while wholesale customers will benefit from 78 MW for a total of 810 MW that will serve SWEPCO's customers.

AEP continues to make significant investments in renewable energy to serve its customers. The company's regulated integrated resource plans call for the addition of more than 8,000 MW of wind and solar, including North Central, and 1,600 MW of natural gas between 2020 and 2030.

American Electric Power, based in Columbus, Ohio, is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions to our customers. AEP's approximately 17,400 employees operate and maintain the nation's largest electricity transmission system and more than 221,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.5 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 5,200 megawatts of renewable energy. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, AEP Energy Partners, AEP OnSite Partners, and AEP Renewables, which provide innovative competitive energy solutions nationwide. For more information, visit aep.com.

 

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SOURCE American Electric Power

FAQ

What are the details of AEP's $2 billion investment in wind projects?

AEP is investing $2 billion to develop 1,485 MW of renewable energy projects in Oklahoma, Arkansas, and Louisiana.

How much will AEP's wind projects save customers?

The projects are expected to save customers approximately $3 billion over the next 30 years.

Which states approved AEP's renewable energy projects?

AEP received regulatory approvals in Arkansas, Louisiana, and Oklahoma.

What was the outcome of the Texas commission's decision regarding AEP?

The Texas Public Utility Commission denied SWEPCO's plan to add 309 MW of wind energy.

When are AEP's North Central wind projects expected to be completed?

The North Central wind projects are expected to be completed over the next two years.