May 1, 2008
AEP PSO Utility Issues RFP for Renewable Energy Resources
COLUMBUS, Ohio, May 1 /PRNewswire-FirstCall/ -- American Electric Power subsidiary Public Service Company of Oklahoma (PSO) today issued a request for proposals (RFP) seeking long-term purchases of up to 200 megawatts (MW) of new renewable energy resources.
According to the RFP, proposals must rely on commercially proven technologies for renewable energy, including wind; solar photovoltaic; biomass firing or co-firing of agricultural crops and all energy crops; hydro (as certified by the Low Impact Hydropower Institute); landfill gas; biogas digesters; and biomass firing or co-firing of crop residues, animal waste and woody waste. The generation must be operational by the end of 2010.
The renewable RFP will fulfill a portion of PSO's energy requirements consistent with the company's Spring 2008 Integrated Resource Plan. It also is part of AEP's plan - announced in 2007 - to add 1,000 MW of new wind or renewable energy by 2011 as a component of the company's comprehensive strategy to address its greenhouse gas emissions. The addition of renewable energy to AEP's energy portfolio avoids an increase in greenhouse gas emissions that would otherwise occur if AEP used traditional fossil generation to meet growing customer demand.
"This RFP continues our commitment to adding renewables, where they are most viable, to our generation portfolio. In Oklahoma, we are already the largest provider of wind energy in the state with 392.5 megawatts of renewable generation serving our customers through long-term contracts. Adding another 200 megawatts of renewable generation will bring the renewable portion of our PSO generation capacity to more than 10 percent," said Michael G. Morris, AEP's chairman, president and chief executive officer.
"Despite best intentions, it is not possible to meet all of the growing energy needs of our customers solely with renewable generation. Even in areas where renewables are most viable, the ability of renewable generation to reach its full potential is inhibited by the constant uncertainty of the Production Tax Credits and the ever-growing constraints on our country's transmission grid. On a national level, we need to codify longer-term tax credits for renewable generation. We also need national regulatory policies that support transmission investment and advance development of a reliable transmission highway to move renewable power from where it can be generated to where it can serve customers," Morris said.
AEP issued RFPs for 65 MW of renewable energy to serve its Southwestern Electric Power Company customers and for 100 MW of renewable energy to serve its Appalachian Power customers in April. AEP has completed three purchases of long-term renewable energy capacity since the company made its 1,000-MW commitment in 2007. The three purchases, all of wind energy, added 275 MW of renewable capacity to serve AEP's customers in Indiana, Michigan, West Virginia, Virginia and Tennessee.
AEP's wind portfolio - prior to the recent RFPs - is 1,050 MW, which includes 310 MW of wind generation owned by AEP in Texas, long-term wind purchase agreements reached before the company's 2007 commitment and agreements reached after the 2007 commitment.
PSO is an electric utility company serving approximately 520,000 customers in eastern and southwestern Oklahoma. Based in Tulsa, PSO has more than 4,000 MW of generating capacity, and is the largest provider of wind energy in the state. News releases and other information about PSO can be found on the World Wide Web at PSOklahoma.com.
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.
This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the registrants believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters; availability of generating capacity and the performance of AEP's generating plants; AEP's ability to recover regulatory assets and stranded costs in connection with deregulation; AEP's ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP's ability to build or acquire generating capacity (including the company's ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs through applicable rate cases or competitive rates; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance); resolution of litigation (including disputes arising from the bankruptcy of Enron Corp. and related matters); AEP's ability to constrain operation and maintenance costs; the economic climate and growth in AEP's service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impairing AEP's ability to refinance existing debt at attractive rates; AEP's ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities; changes in the creditworthiness of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas, coal, nuclear fuel and other energy-related commodities; changes in utility regulation, including the potential for new legislation in Ohio and the allocation of costs within regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the impact of volatility in the capital markets on the value of the investments held by AEP's pension, other postretirement benefit plans and nuclear decommissioning trust; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.
American Electric Power
CONTACT: Melissa McHenry, Manager, Corporate Media Relations of AmericanElectric Power, +1-614-716-1120
Web site: http://www.aep.com/http://www.psoklahoma.com/go/rfphttp://www.psoklahoma.com/
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