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AEP's Okla. utility plans renewable acquisitions to manage gas, power volatility SNL Energy Finance Daily AEP's Okla. utility plans renewable acquisitions to manage gas, power volatilityByline: Justin Horwath Public Service Co. of Oklahoma is asking state regulators to approve its proposed acquisition of nearly 1 GW of wind and solar capacity as part of a $2.47 billion plan that the utility says will help shield customers from volatile natural gas and power prices. The American Electric Power Co. Inc. subsidiary said Nov. 17 that it wants to purchase three wind farms and three solar farms selected through a competitive bidding process. Invenergy LLC subsidiary Invenergy Renewables LLC will develop the projects. 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, or 2.6%, according to the release. The utility intends to purchase the 265-MW Lazbuddie Wind Energy Project in Parmer County, Texas; the 150-MW Algodon Solar Energy Project in Terry County, Texas. It also expects to purchase four facilities in Kansas: the 135-MW Flat Ridge 4 wind farm, the 153-MW Flat Ridge 5 wind farm, the 189-MW Pixley solar project and the Chisholm Trail solar project. The Southwest Power Pool recently increased the generation capacity requirements for member utilities in order to support reliability, Public Service Co. of Oklahoma said. SPP increased its planning reserve margin to 15% from 12%, spokesperson Meghan Sever said, which "creates new generation in the footprint and reduces the risk that we experience another event where load is not able to be served." Utilities lost billions of dollars during a deadly February 2021 winter storm that caused prolonged blackouts across the central U.S. "The facilities are expected to save PSO customers $1 billion in fuel costs over 30 years," the utility said. "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." |
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