SHREVEPORT, La., June 29,
2023 /PRNewswire/ -- Southwestern Electric Power Co.,
an American Electric Power (Nasdaq: AEP) company, has received
approval by the Louisiana Public Service Commission (LPSC) to move
forward with its fuel-free power plan to acquire up to 999
megawatts (MW) of renewable generation resources.
The LPSC today approved the terms of a settlement agreement
reached on March 10, 2023, by all
parties in the proceeding, subject to certain procedural conditions
moving forward. This effort will help meet projected power needs
while protecting customers from volatility in energy costs.
The additional generating capacity is necessary to meet the
energy needs of SWEPCO customers. That need has increased due to
new rules from the Southwest Power Pool (SPP) that require
utilities to have available additional generation capacity to
support reliability. SPP is the 14-state grid-balancing authority
that includes Louisiana,
Arkansas and Texas.
"SWEPCO's analysis of our generation needs showed that the
lowest cost, best value option for capacity was adding wind and
solar resources," said Brett
Mattison, SWEPCO president and Chief Operating Officer. "We
appreciate our regulatory commissioners allowing us to bring more
low-cost, renewable energy to Louisiana customers."
One solar and two wind projects are to be constructed by
Invenergy and acquired by SWEPCO. The three projects were
identified through a competitive bidding process. They are:
- Mooringsport, a 200 MW solar
facility located in Caddo Parish,
Louisiana.
- Diversion, a 200.6 MW wind facility in Baylor County,
Texas
- Wagon Wheel, a 598.4 MW wind facility located in Garfield, Kingfisher, Logan, Payne,
and Noble counties in Oklahoma.
SWEPCO's need for capacity is driven by the retirement of aging
SWEPCO generation units. With these retirements, SWEPCO is facing a
capacity deficit beginning in 2023 that grows to 1,574 MW in 2028
after the retirement of other generating units. SWEPCO intends to
evaluate and/or conduct additional requests for proposals to
explore more opportunities to add low-cost generation and capacity
in the coming years.
SWEPCO's long-term strategy calls for more than one-third of its
SPP-accredited capacity to be satisfied with wind and solar
resources.
Three wind farms in north-central Oklahoma already deliver renewable energy to
SWEPCO's Louisiana and
Arkansas customers.
Today's action by the LPSC, in conjunction with the Arkansas
Public Service Commission's June 1
approval, allows SWEPCO to move forward with plans to acquire up to
999 MW of renewable generation resources.
SWEPCO serves more than 551,000 customers in three states,
including 125,992 in Arkansas.
About Southwestern Electric Power Co.
(SWEPCO)
SWEPCO, an American Electric Power
(Nasdaq: AEP) company, serves more than
551,000 customers in Northwest and Central Louisiana, Northeast Texas and the Texas Panhandle, and Western Arkansas. SWEPCO's
headquarters are in Shreveport,
La. News releases and other information about SWEPCO
can be found at SWEPCO.com. Connect
with us at Facebook.com/SWEPCO,
Twitter.com/SWEPCOnews,
Instagram.com/swepco,
Youtube.com/SWEPCOtv and
LinkedIn.com/company/swepco.
About American Electric Power (AEP)
American
Electric Power, based in Columbus,
Ohio, is powering a cleaner, brighter energy future for its
customers and communities. AEP's approximately 17,000
employees operate and maintain the nation's largest electricity
transmission system and more than 225,000 miles of distribution
lines to safely deliver reliable and affordable power to 5.6
million regulated customers in 11 states. AEP also is
one of the nation's largest electricity producers with
approximately 30,000 megawatts of diverse generating capacity,
including more than 7,000 megawatts of renewable energy. The
company's plans include growing its renewable generation portfolio
to approximately 50% of total capacity by 2032. AEP is
on track to reach an 80% reduction in carbon dioxide emissions from
2005 levels by 2030 and has committed to achieving net zero by
2045. AEP is recognized consistently for its focus on
sustainability, community engagement, and diversity, equity and
inclusion. 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, east Texas and the Texas
Panhandle). AEP also owns AEP
Energy, which provides innovative competitive energy
solutions nationwide. For more information, visit
aep.com
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SOURCE American Electric Power