The Arkansas Public Service Commission (APSC) has approved the $4.5 billion Wind Catcher project sponsored by Southwestern Electric Power Co. (SWEPCO), part of American Electric Power (AEP).
Wind Catcher Energy Connection is a major wind farm and a dedicated power line that will bring low-cost, clean, reliable energy to AEP customers in Arkansas, Louisiana, Oklahoma and Texas. The $4.5 billion project includes the acquisition of a 2,000-megawatt wind farm under construction in the Oklahoma Panhandle, and construction of an approximately 350-mile dedicated power line that will carry the wind energy to the Tulsa area, where the existing grid will deliver it to customers. SWEPCO will own 70 percent of the project. SWEPCO’s sister company, Public Service Company of Oklahoma (PSO), will own 30 percent.
“Wind Catcher is part of our strategy to invest in the energy resources of the future. The Arkansas Commission’s decision recognizes the long-term savings and clean energy that Wind Catcher will deliver to our customers,” said Nicholas K. Akins, AEP chairman, president and CEO.
The major elements of the settlement agreement approved by the APSC are guarantees agreed to by SWEPCO, including a cap on construction costs, qualification for 100 percent of the federal Production Tax Credit, minimum annual production from the project, and other commitments.
SWEPCO anticipates the project will save its customers more than $4 billion over the 25-year life of the wind farm, compared to the projected costs of buying power on the open market.
Customers will see savings primarily through a reduction in the fuel portion of their bills, beginning in 2021.
The Wind Catcher project is also subject to the approval of SWEPCO’s applications in Louisiana and Texas, and PSO’s application in Oklahoma, as well as the Federal Energy Regulatory Commission.
