AEP a Go with $2B North Central Wind Project

May 29, 2020

American Electric Power said it has received enough regulatory approvals to fully move forward with its 1,485-MW North Central Wind Project in Oklahoma.

American Electric Power on Wednesday said it has received enough regulatory approvals to fully move forward with its 1,485-MW North Central Wind Project in Oklahoma.

AEP will invest about $2 billion in the project, which consists of three wind farms and will serve the company’s Southwestern Electric Power Co. (SWEPCO) and Public Service Company of Oklahoma (PSO) affiliates.

The Louisiana Public Service Commission on Wednesday approved a settlement agreement that authorizes SWEPCO — which serves parts of Louisiana, Texas and Arkansas — to purchase 810 MW of nameplate wind capacity from the project. The PSC’s approval included a “flex-up” option that could increase Louisiana’s allocation of that capacity from 268 MW to an estimated 464 MW if Texas regulators do not approve the project.

AEP says the North Central Wind Project will save SWEPCO customers $30 billion over three years. | *AEP*

The Arkansas Public Service Commission also accepted an option to increase the state’s allocation — from 155 MW to about 268 MW if Texas rejects it — when it approved the project earlier this month. The Texas Public Utility Commission’s agenda for its open meeting Friday does not list the project for consideration.

“This investment is expected to save our customers approximately $3 billion over the next 30 years while supporting economic development in our communities,” AEP CEO Nick Akins said. “We will continue to seek approval to provide a share of this renewable energy to our SWEPCO customers in Texas, as we believe the projects offer significant benefits to customers across our SWEPCO footprint.”

PSO received final Oklahoma Corporation Commission approval Feb. 20 for 675 MW. FERC has also approved the project.

The three facilities are being developed by Invenergy in north-central Oklahoma. One facility is expected to be completed by the end of 2020, the other two by the end of 2021.

North Central Wind Project’s three wind farms are slated to be online by 2021. | *AEP*

The project replaces the $4.5 billion Wind Catcher Energy Connection. The plan involved a 2-GW wind farm and a 360-mile transmission connection, but it was canceled in 2018 by AEP when the Texas PUC rejected SWEPCO’s attempt to acquire a 70% interest in the project. (See AEP Cancels Wind Catcher Following Texas Rejection.)

AEP’s regulated integrated resource plans call for the addition of more than 8 GW wind and solar energy between 2020 and 2030.

Arkansas Company News Generation Louisiana SPP/WEIS Texas