American Electric Power’s Public Service Company of Oklahoma (PSO) on Jan. 29 said that it has issued a draft request for proposals (RFP) for economical generating capacity to supply the short-term needs of its customers, with the RFP soliciting bids for the purchase of capacity in amounts of 500 MW up to 800 MW, for a term of three to five years, starting in 2022.
Proposals are due by April 16, the company said.
According to the RFP webpage, resources must be located within the Southwest Power Pool (SPP) that will allow PSO to satisfy its load and planning reserve obligations.
A bidder technical conference will be scheduled in February and the final RFP will be issued on Feb. 28, the site noted.
As noted in the draft RFP, PSO currently purchases more than 1,000 MW of natural gas-fired capacity and energy from third-party suppliers. Due to a combination of purchase agreement terminations and retirements of owned generating capacity, PSO is forecasting a need for additional capacity beginning in 2022 of 500 MW and increasing to 800 MW by 2026.
The draft RFP also noted that bidders must submit at least one proposal for the capacity only product, with a minimum term of three and a maximum term of five years, with a start date of June 1, 2022, and a minimum quantity of 60 MW (base proposal). The draft RFP noted that bidders may provide alternative proposals that offer additional products/benefits — such as energy, ancillary services, and asset purchase. While such proposals are encouraged and will be considered, PSO’s primary objective is to satisfy its SPP capacity obligation in the short-term period.
PSO anticipates filing for regulatory approval in Oklahoma in 3Q20 and receiving regulatory approval about nine months after filing, the draft RFP noted.
Among other things, the draft RFP noted that PSO affiliates will be permitted to respond to the RFP.