PSO Purchases Renewable Energy

Tulsa Business Journal, Staff
2/9/2009

Public Service Company of Oklahoma signs long-term power purchase agreements for approximately 198 megawatts of renewable energy from two Oklahoma wind farms.

Through the 20-year agreements, PSO will purchase 98.9 megawatts from a wind farm in Elk City, being developed by NextEra Energy Resource — formerly FPL Energy — and 99 megawatts from an expansion of Horizon Wind Energy's Blue Canyon facilities north of Lawton.

Both sites are expected to be operational by Dec. 31. The agreements are part of PSO's long-term energy supply plan and are subject to approval by the Oklahoma Corporation Commission.

"Wind energy can play an important role in our ongoing efforts to balance our customers' demands for electricity with the desire to reduce greenhouse gas emissions," said Michael G. Morris, chairman, president and chief executive of American Electric Power, PSO's parent company. "With these agreements, AEP has contracted to add 653 megawatts of renewable wind energy to our generation mix in just the last two years, and we are on target to achieve our voluntary goal of adding 1,000 megawatts of new renewable generation to serve our customers by 2011."

Including the new PSO agreements, AEP's generation mix includes 310 MW of wind turbines owned and operated by AEP in Texas and another 1,120 mw of long-term wind energy purchase agreements for a total of 1,430 mw of wind energy in the company's generation portfolio.

"Renewable generation development is an important part of any strategy to address climate change. To help facilitate additional wind and solar energy development, we need to end the uncertainty that stifles investment by putting in place long-term support for renewable energy projects," Morris said.

American Electric Power is one of the largest electric utilities in the U.S., delivering electricity to more than 5 million customers in 11 states.