U.S. Power Giant Seeks Renewable Energy Projects

The nation’s largest electricity generator is looking to add a few more MWs of renewables to the mix. American Electric Power issued a Request for Proposals (RFP) for renewable energy to help fulfill energy-supply requirements for its retail customers in Arkansas, Louisiana, Oklahoma and Texas.

Generation technologies eligible to bid into the RFP include wind, solar, hydroelectric, geothermal, biomass and biomass-based waste products, including landfill gas. The proposals, for up to 250 MW of renewable generation within the Southwest Power Pool, are due Dec. 1, 2004. AEP expects to complete agreements with any successful bidders in March 2005. AEP is seeking bids from renewable-energy providers that could place new generating facilities into service by Dec. 31, 2005. “Extension of the federal Production Tax Credit program for renewable-energy sources that are operational by the end of 2005 provides a potential opportunity to procure cost-effective renewable energy to help meet the needs of customers of Public Service Company of Oklahoma and Southwestern Electric Power Company,” said Tom Hagan, executive vice president – AEP Utilities-West. The federal Production Tax Credit (PTC) provides owners of renewable resources a tax credit equal to $18 per megawatt-hour for 10 years beginning on the facilities’ in-service date. In June, AEP announced that Public Service Company of Oklahoma had signed a contract, contingent on passage of the federal PTC, to purchase up to 106.5 megawatts of Oklahoma-generated wind power for 20 years.

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