The Public Service Co. of Oklahoma (PSO) subsidiary of American Electric Power (NYSE: AEP) has signed agreements for the long-term purchase of nearly 600 MW of wind energy from facilities under development in northwestern Oklahoma and the Oklahoma panhandle.
Long-term Renewable Energy Purchase Agreements (REPAs) totaling 598.7 MW will provide PSO customers with energy from wind farms near Seiling, Balko and Goodwell beginning Jan. 1, 2016, the utility said in an Oct. 11 statement. The agreements are for 20 years and are subject to approval by the Oklahoma Corporation Commission.
The new REPAs are a result of a Request for Proposals (RFP) issued June 10, in which PSO sought long-term purchases of up to 200 MW of new wind resources. The decision to contract for an additional 400 MW was based on “extraordinary pricing opportunities” that will lower costs for PSO’s customers by an estimated $53m in the first year of the contracts, the utility noted. Annual savings are expected to grow each year over the lives of the contracts.
“With these long-term power purchase agreements we’re adding a significant amount of Oklahoma wind energy, bringing more diversity to our fuel mix, and doing so at a price that will provide substantial savings for our customers,” said Stuart Solomon, PSO president and chief operating officer.
When deliveries of energy from the three new wind contracts commence in 2016, PSO’s total wind energy under contract will be 1,137 MW. The new 20-year agreements are for:
- 199.8 MW from Balko Wind LLC, owned by Apex Clean Energy Holdings LLC and located in Beaver County, in the state panhandle.
- 198.9 MW from Seiling Wind LLC, owned by NextEra Energy Resources LLC and located in Dewey County in northwestern Oklahoma.
- 200 MW from Goodwell Wind Project LLC, owned by TradeWind Energy and located in Texas County in the panhandle.