PSO Files Proposal to Increase Power Supply and Stabilize Customer Bills

Rhea-AI Summary

On November 17, 2022, Public Service Company of Oklahoma (PSO) submitted a proposal to the Oklahoma Corporation Commission for a fuel-free power plan involving a $2.47 billion investment in renewable energy. The plan includes three wind farms and three solar facilities that will generate 995.5 megawatts of energy, aiming to stabilize electricity costs for customers. The average residential monthly bill is projected to rise by $3.48 (2.6%). This initiative aims to protect against market volatility in natural gas prices and is expected to save customers $1 billion in fuel costs over 30 years.

Positive

• Investment of $2.47 billion in renewable energy to increase capacity.
• Expected savings of $1 billion in fuel costs over 30 years.
• New capacity will stabilize electricity costs for PSO customers.

Negative

• Projected monthly bill increase of $3.48 (2.6%) for customers.

TULSA, Okla., Nov. 17, 2022 /PRNewswire/ -- Public Service Company of Oklahoma (PSO) today asked the Oklahoma Corporation Commission (OCC) for approval of its fuel-free power plan to purchase three new wind farms and three new solar facilities. This proposed plan will help meet projected power needs while protecting customers from volatility in energy costs driven by high natural gas and power prices.

The fuel-free power plan would fund the purchase of a total of 995.5 megawatts of new, cost-effective renewable energy. The six projects were chosen through a competitive bidding process.

These resources will help provide long-term stability in electricity costs, insulating customers from future market price volatility of natural gas and purchased power through the addition of fuel-free power generation. After all the facilities are online by the end of 2025, an average residential customer would see an estimated initial monthly bill increase of $3.48 (2.6%). Due to ongoing market volatility, it is difficult to project the precise impact on customer bills as prices will continue to fluctuate based on variables like supply chain issues and fuel costs. 

The additional generating capacity is needed to meet the energy needs of PSO customers. That need has increased due to new rules from the Southwest Power Pool (SPP) that require utilities to have  available additional generation capacity to support reliability. SPP is the 14-state grid balancing authority that includes Oklahoma.

"At PSO we understand the importance of providing affordable service and through this plan, we are excited to keep delivering on that commitment to our customers," said PSO President and Chief Operating Officer Leigh Anne Strahler. "This investment in fuel-free power is another step in our efforts to shield our customers against high costs while meeting their energy needs." 

PSO customers already benefit from the fuel savings of wind energy. The wind farms of North Central Energy Facilities are estimated to save customers at least $156 million in fuel costs from October 2022 to December 2023. The facilities are expected to save PSO customers $1 billion in fuel costs over 30 years. They will also help protect PSO customers from sudden spikes in natural gas prices and purchased power like those that occurred during the February 2021 winter storm.

PSO's Proposed Fuel-Free Power Plan
PSO's proposed fuel-free power plan includes a total Investment of $2.47 billion.  The plan consists of the Lazbuddie wind, Parmer County, TX – 265 MW and Pixley solar, Barber County, KS – 189 MW, which are expected to be completed in April 2025 as well as four facilities scheduled for completion in December 2025; Flat Ridge IV wind, Kingman & Harper Counties, KS – 135 MW, Flat Ridge V wind, Harper County, KS – 153 MW, Chisholm Trail solar, Sedgwick County, KS – 103.5 MW and Algodon solar, Terry County, TX – 150 MW.

About PSO
PSO, a unit of American Electric Power (Nasdaq: AEP), is an electric utility company serving more than 568,000 customer accounts in eastern and southwestern Oklahoma, powering a cleaner, brighter energy future for its customers and 232 communities.  Based in Tulsa, PSO has approximately 3,800 megawatts of diverse generating capacity that primarily includes wind and natural gas.  It maintains and operates more than 24,000 miles of distribution lines and 3,700 miles of transmission lines and is one of the largest distributors of wind energy in the state.  Find news releases and other information at www.PSOklahoma.com.  Connect with us on Facebook, Twitter, NextDoor and Instagram @PSOklahoma.

About American Electric Power (AEP)
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 16,700 employees operate and maintain the nation's largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 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 7,100 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. 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, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.

 

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SOURCE American Electric Power

FAQ

What is PSO's fuel-free power plan investment amount?

PSO's proposed fuel-free power plan involves an investment of $2.47 billion.

How much renewable energy capacity will PSO add?

PSO plans to add a total of 995.5 megawatts of renewable energy through this plan.

What is the expected impact on customer bills?

Average residential customer bills are projected to increase by $3.48 (2.6%).

What savings will PSO customers experience from the new plan?

PSO customers are expected to save $1 billion in fuel costs over 30 years.

When will the new energy facilities be completed?

The new facilities are expected to come online by the end of 2025.