The Indiana Utility Regulatory Commission on Nov. 25 approved a 200-MW renewable energy purchase agreement (REPA) between Indiana Michigan Power (I&M) and Headwaters Wind Farm LLC, a subsidiary of EDP Renewables North America (EDPR NA).
The source of the energy would be a wind project to be located in Randolph County, Ind., called the Headwaters Wind Farm. The REPA includes the purchase of a bundled product entitling I&M to all associated energy, capacity and renewable energy certificates (RECs) for a period of 20 years.
I&M noted that the commission has previously approved three REPAs, which include 100 MW and 50 MW REPAs with the Fowler Ridge Farm in Benton County, Ind., and a 100 MW REPA with the Wildcat Wind Farm I in Madison and Tipton counties, Ind. In those cases, I&M requested approval of 20-year wind purchase power agreements, as well as I&M receiving the RECs that would be produced.
To find this capacity, I&M issued a Request for Proposal (RFP) in Indiana and Michigan in order to achieve competitive bids from several qualified wind projects. I&M subsequently entered into negotiations with EDPR NA over terms, conditions and price for the purchase of about 200 MW of wind power. Thereafter, I&M executed the REPA and is expecting to start receiving energy by Dec. 31, 2014, and will continue for a period of 20 years.
I&M said that the REPA will allow I&M to fulfill its commitment under the recent modification of the New Source Review (NSR) Consent Decree with the U.S. Environmental Protection Agency that is part of a comprehensive environmental compliance plan. To get a break on clean-air mandates for the Rockport coal plant, I&M in part agreed to seek 200 MW of wind capacity.
Without the commitment to acquire additional wind resources, I&M risked expending billions of dollars or losing the Rockport plant as a relatively low cost resource for I&M’s customers. The REPA will provide direct benefits to I&M’s customers and allow I&M additional time to assess the future of its generation portfolio with more certainty about evolving environmental regulations, this American Electric Power (NYSE: AEP) told the commission.
The Indiana commission on Sept. 19 separately decided not to regulate Headwaters and its 200-MW wind project as a “public utility.”
