TXU Electric & Gas and American Electric Power (AEP) jointly announce announced Tuesday a new 130-megawatt wind power project.
The contract establishes TXU Electric & Gas as one of the nation’s leaders in wind power purchasing with contracts to buy 361.5 megawatts from various wind power projects. In announcing this agreement, AEP distinguishes itself as a premier national developer of wind power projects with plans to continue adding to its portfolio.
AEP is the parent company of AEP-West Texas Utilities, which provides electricity to Clarendon and Hedley. TXU is a local provider of natural gas services.
TXU Electric & Gas will buy power produced by the 130-megawatt Trent Mesa Project in West Texas for at least ten years. AEP will develop, own, operate, and maintain the project. AEP will also be involved in the project’s construction. Financial terms of the contract were not disclosed.
AEP plans to begin construction of the 87 wind turbines in November on a West Texas site just south of Interstate 20 about 24 miles west of Abilene. AEP expects more than 515 million-kilowatt hours of electricity will be generated annually at the site, enough to supply about 30,000 homes for TXU Electric & Gas customers. TXU Electric & Gas customers should begin receiving energy from the project after its completion in August 2001.
The Trent Mesa Project is the fourth major wind power agreement reached by TXU Electric & Gas. Including this agreement, TXU Electric & Gas has contracted to purchase more than 1.3 billion-kilowatt hours of renewable energy annually from several wind farms in West Texas. TXU Electric & Gas projects it will have enough wind capacity from these agreements to fuel approximately 75,000 homes.
“TXU Electric & Gas is a national leader in supporting wind power,” said Steve Philley, who directed this project while vice president of TXU Electric Energy Supply and is now chief executive of TXU Australia.
“Under the Texas deregulation law, this places TXU Electric & Gas at almost twice the amount of renewable energy initially required under the new State of Texas legislative mandates. The Trent Mesa Project is another indication of the clean air commitment of TXU Electric & Gas.
“We began our commitment to wind power in the early 1990s, sending out requests for proposals to develop wind farms. In just a few months’ time, we have announced three major agreements that firmly establish wind power as a viable energy option, and we are pleased to add this agreement to our energy portfolio,” Philley said.
“We believe that wind power has become more commercially viable in today’s market. We see exciting opportunities in North America as natural gas prices continue to remain volatile. We are very pleased to work with TXU Electric & Gas on this project,” said Dwayne L. Hart, AEP Energy Services Vice President of Business Development and Strategy. “This project adds an exciting new opportunity to AEP’s generation development segment.”
AEP has established a special website for the Trent Mesa Project. The address of the site is http://www.trentmesa.com.
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