SHREVEPORT, La., July 2, 2020
The Public Utility Commission of Texas (PUCT) has denied approval of a plan by Southwestern Electric Power Co. (SWEPCO), an American Electric Power (NYSE: AEP) company, to add 810 megawatts (MW) of wind energy. While the PUCT rejected the proposal, the full project will proceed to serve SWEPCO’s customers in Arkansas and Louisiana, based on regulatory approvals previously received in those states.
“It is disappointing that our customers in East Texas and the Panhandle will not have access to this major wind project, missing the opportunity for long-term cost savings and making it more difficult for businesses, residents and communities to meet their renewable energy goals,” said Malcolm Smoak, SWEPCO president and chief operating officer. “However, today’s decision by the PUCT does not affect the project’s full viability. We appreciate the approvals we received from the Arkansas Public Service Commission and the Louisiana Public Service Commission, and we look forward to bringing this low-cost renewable energy to our customers in Arkansas and Louisiana,” Smoak said.
The approvals by the Arkansas Public Service Commission and Louisiana Public Service Commission included provisions to increase the number of megawatts allocated to them if one state does not approve the proposal.
“We are grateful for the support this project received from our customers and communities in Texas and look forward to continuing to pursue renewable energy projects to serve them. It is our sincere hope that we will have another opportunity to bring our Texas customers more clean energy and cost savings,” Smoak said.
SWEPCO’s wind project includes the acquisition of three wind facilities in north central Oklahoma – known as the North Central Energy Facilities – in conjunction with its sister company, Public Service Company of Oklahoma (PSO). SWEPCO will own 810 MW, or 54.5% of the 1,485-MW project with an investment of $1.01 billion. SWEPCO and PSO will acquire the projects at their completion over the next two years.
In addition to the environmental benefits of wind energy, SWEPCO’s Arkansas and Louisiana customers will save an estimated $2 billion over the 30-year expected life of the new facilities.
PSO received final Oklahoma Corporation Commission approval Feb. 20, 2020, of a settlement agreement in its plan to add 675 megawatts of wind energy.
The Federal Energy Regulatory Commission (FERC) has approved the acquisition of the wind facilities by SWEPCO and PSO.
SWEPCO serves more than 536,300 customers in three states, including 231,000 in northwest and central Louisiana, 185,500 in northeast Texas and the Texas Panhandle and 119,800 in western Arkansas.
About Southwestern Electric Power Co. (SWEPCO)
SWEPCO, an American Electric Power (AEP: NYSE) company, serves more than 536,300 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. Connect with us at Facebook.com/SWEPCO, Twitter.com/SWEPCOnews, Youtube.com/SWEPCOtv and SWEPCOConnections.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 approximately 17,400 employees operate and maintain the nation’s largest electricity transmission system and more than 221,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.5 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 5,200 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, east Texas and the Texas Panhandle). AEP also owns AEP Energy, AEP Energy Partners, AEP OnSite Partners, and AEP Renewables, which provide innovative competitive energy solutions nationwide. For more information, visit aep.com.