AEP Ohio, a unit of American Electric Power (NYSE: AEP), on Dec. 16 issued two separate Requests for Proposal (RFPs) for wind and solar resources in Ohio.
AEP Ohio is seeking proposals for up to 250 MW of wind energy resources and separate proposals for up to 100 MW of solar energy resources (each 10 MW or greater). Preference will be given to solar projects that are sited in Appalachian Ohio, create permanent manufacturing jobs in Appalachian Ohio and commit to hiring Ohio military veterans. Proposals are due Feb. 16, 2017.
AEP Ohio committed to develop 500 MW of new wind generation and 400 MW of solar generation in Ohio as part of a stipulated agreement approved by the Public Utilities Commission of Ohio (PUCO) on Nov. 3, 2016. The renewable energy projects must be approved by the PUCO. AEP Ohio or AEP affiliates will be allowed the right to own up to 50% of these projects on an aggregate net basis.
AEP Ohio is requesting bids in the wind RFP which will result in obtaining up to approximately 250 MW of nameplate rated wind energy resources via one or more of the following options:
- Long-term Renewable Energy Purchase Agreements (REPA) for the purchase of the renewable energy products (energy, capacity, ancillary services and environmental attributes) generated or associated with the facility.
- REPA with an option to purchase 50% of the asset, at completion, by AEP Ohio or an AEP affiliate.
- Asset Purchase Agreement (APA) for the purchase of 100% of the asset at the completion of the project’s construction and commissioning.
Each of the options listed needs to be implemented in a manner to ensure that AEP Ohio “owns or operates the generation plant” for purposes of state code, including but not necessarily limited to AEP Ohio being the market participant for the generation plant under PJM Interconnection rules. Only projects which are included in the Ohio Power Siting Board’s “Approved Wind Facilities” list are eligible to participate in this wind RFP.
The solar RFP has similar provisions about REPA and AEP Ohio ownership.
Eligible solar and wind projects should achieve commercial operation by Dec. 31, 2018. The preferred delivery period start date for solar and wind REPA proposals is Jan. 1, 2019. Other delivery period start dates may be considered.
AEP Ohio is aiming in both RFPs for contract execution in May 2017 and applications to the PUCO for project approvals in June 2017.
AEP Ohio currently has long-term power purchase agreements with:
- the 10-MW Wyandot Solar Farm near Upper Sandusky, Ohio; and
- the Fowler Ridge (100 MW, Benton and Tippacanoe counties, Indiana) and Timber Road (99 MW, Paulding County, Ohio) wind farms.
AEP Ohio provides electricity to nearly 1.5 million customers and earlier this decade divested its power plants under Ohio’s utility deregulation program. American Electric Power is one of the largest electric utilities in the United States, delivering electricity and custom energy solutions to nearly 5.4 million customers in 11 states. AEP’s headquarters are in Columbus, Ohio.