Louisiana nod secured for USD-4.5bn Wind Catcher project

The Louisiana Public Service Commission (LPSC) has granted approval to the USD-4.5-billion (EUR 3.88bn) Wind Catcher project of Southwestern Electric Power Co (SWEPCO), part of American Electric Power (NYSE:AEP).

The Wind Catcher Energy Connection includes a 2-GW wind farm in the Oklahoma Panhandle and a dedicated power line to bring clean electricity to AEP customers in Arkansas, Louisiana, Oklahoma and Texas.

In a press release on Wednesday, AEP said that SWEPCO will own 70% of the project, while sister company Public Service Company of Oklahoma (PSO) will hold the remaining 30%. Upon completion, planned for the fourth quarter of 2020, the two companies will acquire the wind park from Invenergy, which is currently building it in Cimarron and Texas counties in the Oklahoma Panhandle. The plant, itself, touted as the largest single-site wind project, will be powered by 800 GE turbines of 2.5 MW. Key components of the turbines are planned to be made in Louisiana.

The LPSC has approved a settlement agreement, which includes a cap on construction costs, qualification for 100% of the federal Production Tax Credit (PTC) and minimum annual production.

The project secured approval from the Arkansas Public Service Commission (APSC) in May and still needs to get the green light from regulators in Texas and Oklahoma. It is projected to bring more than USD 4 billion in savings to SWEPCO’s customers during the 25-year lifespan of the wind park. Customers will see savings mainly through a reduction in the fuel portion of their bills, beginning in 2021.

(USD 1.0 = EUR 0.864)

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