PSO's plan to add 675 MW of Oklahoma wind moves a step forward

Public Service Company of Oklahoma (PSO) has reached a settlement agreement with certain stakeholders on the terms of its planned acquisition of a 45.5% stake in a 1,485-MW wind project portfolio in Oklahoma.

The subsidiary of utility American Electric Power Company Inc (NYSE:AEP) is seeking to buy an interest in three projects that will add 675 MW of wind power capacity to its power generation fleet, AEP said on Tuesday. The power plants, collectively called the North Central Energy Facilities, will be built in seven Oklahoma counties at a cost of almost USD 2 billion (EUR 1.8bn). PSO's share of the investment is USD 908 million.

PSO has reached the settlement agreement with the Public Utility Division Staff of the Oklahoma Corporation Commission (OCC), Oklahoma Attorney General's Office, customer groups and other parties. The agreement, however, is subject to final regulatory clearance.

"This settlement agreement puts PSO a step closer to adding more low-cost Oklahoma wind energy to its portfolio," said Peggy Simmons, PSO’s president and chief operating officer. The utility estimates that the 45.5% shareholding in the portfolio will bring over USD 1 billion in savings to its clients during the operational life of the wind parks.

All projects in the specific portfolio have been developed by Chicago-based Invenergy and are planned to come online in 2020 and 2021. Southwestern Electric Power Co (SWEPCO), another AEP subsidiary, eyes 810-MW ownership in the assets.

(USD 1.0 = EUR 0.898)

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