AEP subsidiary signs contract with 200 MW wind project

An American Electric Power (NYSE:AEP) subsidiary has signed a 20-year contract to buy electricity generated from a 200-MW wind power project in Indiana.

Indiana Michigan Power (I&M) said June 10 it has signed the long-term power purchase agreement (PPA) with EDPR for the output of the planned Headwaters wind project planned for Randolph County, about 85 miles south of Fort Wayne and 85 miles east of Indianapolis.

EDPR is also known as EDP Renewables (Euronext: EDPR), a global renewable energy company, based in Spain, according to its website. The deal is being done with EDP subsidiary EDP Renewables North America.

The wind farm’s turbines will be connected to the AEP transmission system to deliver power to I&M customers in both Michigan and Indiana. Construction on Headwaters Wind Farm is slated to begin before year’s end and is expected to be fully operational by the end of 2014.

The wind power contract resulted from a request for proposals that I&M issued in February to fulfill its commitment under a coal retirement consent order negotiated with the U.S. Environmental Protection Agency, several northeastern states, and various environmental groups to add 200 MW of new wind energy.

The company solicited only wind projects in late stage development and was very pleased with the quality of the bids, as well as the pricing offered.

“Our agreement with EDPR is an important step in our continuing efforts to diversify our generation portfolio, which includes wind, hydro, nuclear and coal,” said Indiana Michigan Power COO Paul Chodak III.

EDPR expects to create the equivalent of more than 150 full-time jobs throughout the construction phase and more than 20 permanent jobs once the wind project is completed in 2014.

The addition of Headwaters Wind Farm will bring I&M’s total wind power portfolio to 450 MW. I&M has power purchase agreements for a total of 150 MW from the Fowler Ridge Wind Farm in Benton County in Indiana and 100 MW from the Wildcat-1 Wind Farm in Madison, Grant, Howard and Tipton counties in Indiana.

I&M is also making plans for “life cycle management” work at the Cook nuclear plant in Bridgman, Mich.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.