The Florida Public Service Commission on Oct. 11 approved cost recovery for Gulf Power‘s energy purchase agreement with Morgan Stanley Capital Group, which will encourage wind generation development.
The 20-year agreement is expected to save customers $21 million.
“Customers will realize savings within the first year of Gulf’s power purchase agreement, and it also encourages renewable energy development,” said PSC Chairman Julie Brown. “The agreement is a win for customers, the economy, and the environment.”
Under the agreement, Morgan Stanley will deliver the equivalent monthly energy output of a 94-MW portion of the Kingfisher Wind Farm in Oklahoma. Gulf Power, a subsidiary of Southern Co. (NYSE: SO), will receive all renewable attributes, including renewable energy credits (REC) associated with the corresponding output of the Kingfisher Wind Farm. Gulf will return any proceeds from REC sales to customers through its fuel charge.
This Oct. 11 recovery approval is similar to Gulf Power’s Kingfisher Wind Farm agreement recovery approved by the PSC in 2015.
Gulf Power on June 27 petitioned the Florida commission for this approval. This agreement is substantially similar to the Energy Purchase Agreement between Gulf Power and Morgan Stanley which was approved by the commission in May 2015. That so-called “Kingfisher I” agreement involved a 178-MW portion of the Kingfisher Wind Farm, which at the time was under construction in Kingfisher and Canadian counties, Oklahoma. The wind turbines designated for Gulf Power under Kingfisher I entered commercial operation as planned in December 2015 and Morgan Stanley began delivering energy to Gulf Power on Jan. 1, 2016.
This latest agreement encompasses 47 additional wind turbines – the bulk of the remaining wind turbines at the Kingfisher facility. All 47 turbines have entered commercial operation. The Kingfisher Wind Farm consists of a total of 149 2-MW wind turbines having an aggregate nameplate capacity of 298 MW. With the addition of this agreement in combination with Kingfisher I, 136 of the 149 Kingfisher turbines have now been designated for Gulf Power.