Texas regulators Thursday rejected their ratepayers’ participation in an American Electric Power wind project for the second time in three years, denying a plan by subsidiary Southwestern Electric Power Co. (SWEPCO) to add 810 MW of wind energy (49737).

The Public Utility Commission’s denial will not affect AEP’s $2 billion North Central Wind Project, comprising three wind farms in Oklahoma that will provide 1,485 MW of capacity. Arkansas, Louisiana and Oklahoma regulators have already approved the project, as has FERC. The Arkansas and Louisiana approvals included “flex up” provisions that increase capacity allocations in case of a state’s rejection. (See AEP a Go with $2B North Central Wind Project.)

An estimated 464 MW of capacity will now be allocated to SWEPCO’s Louisiana customers and 268 MW to Arkansas customers. SWEPCO sister company Public Service Company of Oklahoma’s (PSO) share will remain at 675 MW. SWEPCO wholesale customers will receive an additional 78 MW.

SWEPCO President Malcolm Smoak reiterated that the PUC’s order does not affect North Central’s “full viability.”

“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,” he said in a statement.

AEP says the North Central wind facilities will save its SWEPCO and PSO customers $3 billion over the next 30 years.

The Texas commission rejected that argument in approving administrative law judges’ proposed decision. The ALJs said the North Central wind facilities “will significantly increase SWEPCO’s rate base, with some of the financial risk placed on the customers rather than the shareholders.”

SWEPCO’s request was opposed by most intervening Texas consumer groups. They pointed out that the wind generation is not needed for SWEPCO’s capacity needs. PUC Chair DeAnn Walker agreed, noting the utility is projected to have excess capacity until 2026.

“How this has been laid out is not something that I can go with,” she said.

“There are features of the project that I really like, but if you bring us a project [that benefits consumers], yet all consumer groups are opposed,” Commissioner Arthur D’Andrea said, “it makes it difficult to grant that.”

“It seems like the quantification of benefits … did not become, to me, convincing,” added Commissioner Shelly Botkin.

Invenergy is developing the three wind farms. One is expected to be completed this year, the other two by the end of 2021. SWEPCO and PSO will acquire the facilities upon their completion.

In 2018, the PUC similarly denied SWEPCO’s attempt to acquire a 70% interest in AEP’s proposed $4.5 billion Wind Catcher Energy Connection. AEP canceled the project the day after the commission’s rejection. (See AEP Cancels Wind Catcher Following Texas Rejection.)