SHREVEPORT, La., May 8, 2018 /PRNewswire/ -- Southwestern
Electric Power Co. (SWEPCO), an American Electric Power (NYSE: AEP)
company, today announced that the Arkansas Public Service
Commission (APSC) determined the Wind Catcher Energy Connection
project is in the public interest.
The APSC's decision approved provisions of a settlement
agreement submitted in a Feb. 20
joint motion by the APSC General Staff, the Arkansas Attorney General, SWEPCO, Walmart
Stores, Inc. and Sam's West, Inc.
Wind Catcher Energy Connection is a major wind farm and a
dedicated power line that will bring low-cost, clean, reliable
energy to AEP customers in Arkansas, Louisiana, Oklahoma and Texas. The $4.5
billion project includes the acquisition of a 2,000-megawatt
wind farm under construction in the Oklahoma Panhandle, and construction of an
approximately 350-mile dedicated power line that will carry the
wind energy to the Tulsa area,
where the existing grid will deliver it to customers. SWEPCO will
own 70 percent of the project. SWEPCO's sister company, Public
Service Company of Oklahoma (PSO),
will own 30 percent.
"Wind Catcher is part of our strategy to invest in the energy
resources of the future. The Arkansas Commission's decision recognizes the
long-term savings and clean energy that Wind Catcher will deliver
to our customers," said Nicholas K.
Akins, AEP chairman, president and chief executive officer.
"The Commission thoroughly evaluated our application, including the
substantial performance guarantees that were developed during the
review process, and they agree that Wind Catcher will provide
significant savings and long-term benefits for customers."
The major elements of the settlement agreement approved by the
APSC are guarantees agreed to by SWEPCO, including a cap on
construction costs, qualification for 100 percent of the federal
Production Tax Credits, minimum annual production from the project,
and other commitments.
SWEPCO anticipates the project will save its customers more than
$4 billion over the 25-year life of
the wind farm, compared to the projected costs of buying power on
the open market.
Cost savings include no fuel cost for wind, which lowers
SWEPCO's overall fuel and purchased power costs; full value of the
federal Production Tax Credit, which is available for construction
of new wind farm projects; and the cost-efficient delivery of the
wind generation to customers through the new, dedicated power
line.
Customers will see savings primarily through a reduction in the
fuel portion of their bills, beginning in 2021.
The economic impact of the project will include manufacturing
key components of the project's wind turbines in states served by
SWEPCO. GE Renewable Energy, which will provide 800 of its
2.5-megawatt wind turbines for the Wind Catcher facility,
anticipates that a significant number of turbine blades will be
manufactured in Arkansas.
"This project further diversifies the energy resource mix
serving SWEPCO customers. Many of our customers – including
Walmart, the City of Fayetteville,
the University of Arkansas – and other
companies, communities and individuals are looking to us to help
them meet their own sustainability and renewable energy goals,"
said Brian Bond, SWEPCO vice
president of External Affairs. "By tapping into this excellent wind
resource and economically delivering the energy to all of our
customers, we can provide low-cost clean energy to power the
communities we serve."
Wind Catcher is the largest single-site wind project in
the United States. The wind farm
is under development by Invenergy in Cimarron and Texas counties in the Oklahoma Panhandle. SWEPCO and PSO will
purchase the facility at completion, which is scheduled for the
fourth quarter of 2020.
SWEPCO, which serves more than 117,000 customers in Arkansas, filed its application with the APSC
July 31, 2017.
The Wind Catcher project is also subject to the approval of
SWEPCO's applications in Louisiana
and Texas, and PSO's application
in Oklahoma, as well as the
Federal Energy Regulatory Commission.
More information on the project is available at
SWEPCO.com/WindCatcher and WindCatcherEnergy.com.
About American Electric Power (AEP)
American Electric Power, based in Columbus, Ohio, is focused on building a
smarter energy infrastructure and delivering new technologies and
custom energy solutions to our customers. AEP's more than 17,000
employees operate and maintain the nation's largest electricity
transmission system and more than 224,000 miles of distribution
lines to efficiently deliver safe, reliable power to nearly 5.4
million regulated customers in 11 states. AEP also is one of the
nation's largest electricity producers with approximately 33,000
megawatts of diverse generating capacity, including 4,200 megawatts
of renewable energy. AEP's family of companies includes utilities
AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West
Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky
Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana and east Texas). AEP also owns AEP Energy, AEP Energy
Partners, AEP OnSite Partners and AEP Renewables, which provide
innovative competitive energy solutions nationwide.
About Southwestern Electric Power Co. (SWEPCO)
SWEPCO, an American Electric Power (AEP: NYSE) company, serves
532,000 customers in western Arkansas, northwest and central Louisiana, northeast Texas and the Texas
Panhandle. SWEPCO's headquarters are in Shreveport, La. News releases and other
information about SWEPCO can be found at SWEPCO.com.
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SOURCE American Electric Power