Indiana Michigan Power approved in Michigan for 200-MW wind deal

The Michigan Public Service Commission on March 6 approved the Indiana Michigan Power unit of American Electric Power (NYSE: AEP) to enter into a 20-year renewable energy power purchase agreement (REPA) with Headwaters Wind Farm LLC.

The utility has filed for this approval in June 2013. I&M entered into a 20-year REPA with Headwaters for the annual purchase of 200 MW of electric capacity and related energy.

Under the approval, I&M is authorized to implement a power supply cost recovery factor of up to 2.55 mills per kilowatt-hour during the 12-month period ending Dec. 31, 2014, effective with the first billing month immediately following commission approval of this order.

In February 2013, American Electric Power Service Corp., as agent for I&M, issued a request for proposals (RFP) for 200 MW of Wind Energy from sources located in either Indiana or Michigan. The product sought by the RFP was 200 MW (nameplate) of renewable wind generation to fulfill a portion of AEP’s energy and capacity requirements for I&M. Headwaters was selected from the proposals received in response to I&M’s RFP.

The Indiana Utility Regulatory Commission in November 2013 also approved this contract with Headwaters Wind Farm, a subsidiary of EDP Renewables North AmericaThis wind project would be located in Randolph County, Ind. I&M is expecting to start receiving energy from it by Dec. 31, 2014.

The Indiana commission in September 2013 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.