Southwestern Electric Power Company (SWEPCO) on Jan. 7 said that it is requesting proposals for up to 1,200 MW of additional wind energy resources to be in commercial operation by Dec. 15, 2021.
Proposals must have a minimum nameplate rating of 100 MW and are due March 1, the company said. SWEPCO noted that it is seeking to acquire new or existing projects that qualify for at least 80% of the federal Production Tax Credit (PTC). Projects must be located in, and interconnected to, the Southwest Power Pool (SPP) regional grid in Arkansas, Louisiana, Texas or Oklahoma, SWEPCO said.
Any projects selected through the RFP process will be reviewed for regulatory approval by the Arkansas Public Service Commission, Louisiana Public Service Commission, Public Utility Commission of Texas and FERC.
SWEPCO said that its Integrated Resource Plans show significant increases in renewable energy, including wind and solar, over the next 20 years. SWEPCO customers are already served by 469 MW of wind energy from Texas, Oklahoma and Kansas through multiple power purchase agreements, the company said.
As noted in the statement, the RFP was issued on behalf of SWEPCO by American Electric Power Service Corp., (AEPSC), which, like SWEPCO, is an American Electric Power (NYSE:AEP) company.
According to the RFP, contemporaneous with the RFP, AEPSC is administering an RFP on behalf of AEP’s Public Service Company of Oklahoma (PSO), which is seeking the same wind energy resources in the same geographical area as SWEPCO in the RFP through the acquisition of one or more wind projects.
SWEPCO and PSO are affiliates and anticipate that one or more of the wind projects for which they are seeking proposals through their respective RFPs may be jointly owned by them. The RFP added that SWEPCO is only seeking projects on a turnkey basis in which it individually, or together with PSO, will acquire all of the equity interests in the project company whose assets are comprised solely of the project.
The company is seeking projects that:
- Are not currently experiencing, or anticipated by the company to experience, significant congestion or deliverability constraints that are likely to result in adverse project economics
- Balance project performance and deliverability to the AEP West load zone in the Tulsa area via a potential generation-tie line that may be built by the company in the future to avoid or alleviate anticipated transmission congestion, if necessary
Among other things, the RFP said that the company anticipates filing for regulatory approval in each of its operating jurisdictions – Louisiana, Arkansas, and Texas – in 3Q19 and receiving regulatory approvals by 3Q20.