AEP cancels wind project

American Electric Power is canceling the Wind Catcher project as a result of the Public Utility Commission of Texas’ July 26 decision to deny approval of the project.
The project had been approved by the Arkansas Public Service Commission, Louisiana Public Service Commission and Federal Energy Regulatory Commission. A decision was pending at the Oklahoma Corporation Commission.

AEP unit Southwestern Electric Power Company’s (SWEPCO) share of the project was 70 percent, and Public Service Company of Oklahoma’s (PSO) share was 30 percent.

“Wind Catcher has had broad support among many customers, community leaders and elected officials, and we greatly appreciate this support,” said Malcolm Smoak, SWEPCO president and chief operating officer. “They embraced the extraordinary opportunity Wind Catcher would provide for long-term savings on electricity costs for families, businesses and communities, as well as more clean energy and a more diversified energy mix.”

“We also appreciate the careful examination and ultimate approval of the project by Arkansas, Louisiana and federal regulators,” Smoak said.

The $4.5 billion Wind Catcher project included acquisition of a 2,000-megawatt wind farm under construction in the Oklahoma Panhandle and construction of an approximately 350-mile dedicated generation tie line to the Tulsa area, where the existing electrical grid would deliver the wind energy to SWEPCO and PSO 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,” said Nicholas K. Akins, AEP chairman, president and chief executive officer.

“To realize the full benefits of Wind Catcher for customers, timely approvals were required from all jurisdictions so we could complete the project by the end of 2020 and be eligible for 100 percent of the federal production tax credit. We want to thank our employees and our partners for all of their work on the development of the Wind Catcher project,” Akins said. “The strategic investments we are making in AEP’s regulated businesses will continue to support our 5 percent to 7 percent earnings growth rate. We are investing in a cleaner, smarter energy system for our customers and will continue to pursue opportunities to provide the new energy resources and technology solutions that bring value to our customers.”

AEP plans to invest $24 billion in 2018-2021 to rebuild and enhance aging infrastructure, add advanced technologies to the energy system and create a more reliable grid to enhance service for customers.