UPDATE - AEP scraps USD-4.5bn Wind Catcher project

American Electric Power (NYSE:AEP) on Friday said it is cancelling the USD-4.5-billion (EUR 3.9bn) Wind Catcher project because of Thursday's decision by the Public Utility Commission of Texas to reject the project.

The Wind Catcher project 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. It had secured approvals from the Arkansas Public Service Commission, Louisiana Public Service Commission and Federal Energy Regulatory Commission, and a decision was pending at the Oklahoma Corporation Commission, AEP noted.

The company said that it needed timely approvals to complete the project by the end of 2020 and be able to receive 100% of the federal production tax credit in order to realise the project's full benefits for its customers.

"We are disappointed that we will not be able to move forward with Wind Catcher, which was a great opportunity to provide more clean energy, lower electricity costs and a more diverse energy resource mix for our customers in Arkansas, Louisiana, Oklahoma and Texas," commented AEP chairman, president and chief executive Nicholas K Akins.

AEP said it remains committed to 5%-7% earnings growth through investments to improve customer service. In 2018-2021, the company plans to spend USD 24 billion on upgrading aging infrastructure, adding advanced technologies to the energy system and creating a more resilient grid.

The 2-GW wind farm was to be acquired from developer Invenergy. Once completed, the Wind Catcher project would have been owned by the AEP companies - Southwestern Electric Power Co (SWEPCO) and Public Service Company of Oklahoma (PSO).

(USD 1 = EUR 0.858)

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