TULSA,
Okla., Nov. 17, 2022 /PRNewswire/ -- Public
Service Company of Oklahoma (PSO)
today asked the Oklahoma Corporation Commission (OCC) for approval
of its fuel-free power plan to purchase three new wind farms and
three new solar facilities. This proposed plan will help meet
projected power needs while protecting customers from volatility in
energy costs driven by high natural gas and power prices.
The fuel-free power plan would fund the purchase of a total of
995.5 megawatts of new, cost-effective renewable energy. The six
projects were chosen through a competitive bidding process.
These resources will help provide long-term stability in
electricity costs, insulating customers from future market price
volatility of natural gas and purchased power through the addition
of fuel-free power generation. After all the facilities are online
by the end of 2025, an average residential customer would see an
estimated initial monthly bill increase of $3.48 (2.6%). Due to ongoing market volatility,
it is difficult to project the precise impact on customer bills as
prices will continue to fluctuate based on variables like supply
chain issues and fuel costs.
The additional generating capacity is needed to meet the energy
needs of PSO customers. That need has increased due to new rules
from the Southwest Power Pool (SPP) that require utilities to
have available additional generation capacity to support
reliability. SPP is the 14-state grid balancing authority that
includes Oklahoma.
"At PSO we understand the importance of providing affordable
service and through this plan, we are excited to keep delivering on
that commitment to our customers," said PSO President and Chief
Operating Officer Leigh Anne
Strahler. "This investment in fuel-free power is another
step in our efforts to shield our customers against high costs
while meeting their energy needs."
PSO customers already benefit from the fuel savings of wind
energy. The wind farms of North Central Energy Facilities are
estimated to save customers at least $156
million in fuel costs from October
2022 to December 2023. The
facilities are expected to save PSO customers $1 billion in fuel costs over 30 years. They will
also help protect PSO customers from sudden spikes in natural gas
prices and purchased power like those that occurred during the
February 2021 winter storm.
PSO's Proposed Fuel-Free Power Plan
PSO's proposed
fuel-free power plan includes a total Investment of $2.47 billion. The plan consists of the
Lazbuddie wind, Parmer County, TX – 265 MW and Pixley solar,
Barber County, KS – 189 MW, which
are expected to be completed in April
2025 as well as four facilities scheduled for completion in
December 2025; Flat Ridge IV wind,
Kingman & Harper Counties, KS – 135 MW, Flat Ridge V wind,
Harper County, KS – 153 MW,
Chisholm Trail solar, Sedgwick County, KS – 103.5 MW and Algodon
solar, Terry County, TX – 150
MW.
About PSO
PSO, a unit of American Electric Power
(Nasdaq: AEP), is an electric utility company serving more than
568,000 customer accounts in eastern and southwestern Oklahoma, powering a cleaner, brighter energy
future for its customers and 232 communities. Based in
Tulsa, PSO has approximately 3,800
megawatts of diverse generating capacity that primarily includes
wind and natural gas. It maintains and operates more than
24,000 miles of distribution lines and 3,700 miles of transmission
lines and is one of the largest distributors of wind energy in the
state. Find news releases and other information at
www.PSOklahoma.com. Connect with us on Facebook, Twitter,
NextDoor and Instagram @PSOklahoma.
About American Electric Power (AEP)
American Electric
Power, based in Columbus, Ohio, is
powering a cleaner, brighter energy future for its customers and
communities. AEP's approximately 16,700 employees operate and
maintain the nation's largest electricity transmission system and
more than 224,000 miles of distribution lines to safely deliver
reliable and affordable power to 5.5 million regulated customers in
11 states. AEP also is one of the nation's largest electricity
producers with approximately 31,000 megawatts of diverse generating
capacity, including more than 7,100 megawatts of renewable energy.
The company's plans include growing its renewable generation
portfolio to approximately 50% of total capacity by 2032. AEP is on
track to reach an 80% reduction in carbon dioxide emissions from
2005 levels by 2030 and has committed to achieving net zero by
2045. AEP is recognized consistently for its focus on
sustainability, community engagement, and diversity, equity and
inclusion. AEP's family of companies includes utilities 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, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. For more
information, visit aep.com.
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SOURCE American Electric Power