American Electric Power (NYSE:AEP) subsidiaries have agreed to a power purchase agreement with the Green Country Energy LLC gas-fired power plant in Jenks, Okla., the company confirmed Dec. 27.
Southwestern Public Service Co. (SWEPCO) and Public Service Co. of Oklahoma (PSO) reached a deal with an Exelon (NYSE:EXC) subsidiary to buy 250 MW under a five-year contract.
Exelon Generation markets the power for Green Country plant, which is controlled by a U.S. affiliate of Tokyo-based J-Power Group.
“The PPA with Exelon/Green Country would be for 250 MW, for five years starting June 1, 2016, with 126 MW of the total going to SWEPCO and the remaining 124 MW going to PSO,” said an AEP spokesperson.
Of the 126 MW going to SWEPCO, 38 MW will go to SWEPCO in Louisiana, 23 MW to Arkansas, 42 MW to Texas and 23 MW to Wholesale (FERC) jurisdiction.
SWEPCO is proceeding with getting the necessary approval in Louisiana. FERC and other state jurisdiction approvals are not needed at this stage, but the prudency of the capacity purchase will be reviewed by those other jurisdictions, the AEP spokesperson said.
“The PPA provides an economic market-based solution to meet a portion of the company’s future capacity needs to reliability serve its customers’ demand for the year 2016 and beyond,” the spokesperson said.