Indiana Michigan approved to buy power from Headwaters Wind

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.”

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.