August 15, 2008
AEP Subsidiary Signs Long-Term Power Purchase Agreement With Beech Ridge Energy
American Electric Power's subsidiary Appalachian Power has signed a long-term power purchase agreement for wind energy with Beech Ridge Energy, a subsidiary of Invenergy Wind.
Through the 20-year agreement, Appalachian Power will purchase all of the output, between 100MW and 147MW, from the first phase of the planned 186MW Beech Ridge Energy wind project currently under development in Greenbrier County, West Virginia.The wind farm is expected to be on line by March 31, 2010. The agreement is subject to approval from the Public Service Commission of West Virginia and extension for 2009 of the federal production tax credit for renewable energy.
The new agreement is part of American Electric Power's (AEP) voluntary plans, announced in 2007, to add 1,000MW of new wind energy by 2011 as a component of the company's comprehensive strategy to address its greenhouse gas emissions.
The addition of wind capacity to AEP's energy portfolio helps it to avoid an increase in greenhouse gas emissions that would otherwise occur if AEP used traditional fossil generation to meet growing customer demand.
The agreement with Beech Ridge Energy is the third long-term wind energy purchase agreement for Appalachian Power, providing renewable energy for use by its customers in West Virginia, Virginia and Tennessee. In 2007, Appalachian Power announced two agreements for a total of 175MW of wind energy.
Michael Morris, AEP's chairman, president and CEO, said: "Wind and other renewables are becoming an integral part of the diverse power generation mix necessary to meet our customers' electricity needs. Adding these renewable generation resources, along with our plans for new baseload generation using clean coal and other technologies, positions us to continue to meet our customers' needs while also reducing our carbon footprint."