SHREVEPORT, La., June 29, 2023 - 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
SOURCE American Electric Power
