Public Service Company of Oklahoma (PSO) today announced that it has entered into the largest wind power purchase agreement in Oklahoma. The agreement will not raise customer rates.
 
PSO signed a contract with FPL Energy, LLC, a subsidiary of FPL Group (NYSE: FPL), to purchase up to 106.5 megawatts of Oklahoma-generated wind power for 20 years. FPL Energy will supply the power from its Weatherford Wind Energy Center that it will develop on a 3,800-acre site near Weatherford, Oklahoma.
 
The project is contingent on the extension of the federal wind energy production tax credit (PTC), pending in the U.S. Congress, which expired at the end of 2003. Construction of the project will begin only after Congress approves an extension of the PTC and certain other approvals are obtained by FPL Energy.  
 
“This is a project that benefits everyone,” said Stuart Solomon, PSO president and chief operating officer. “Rates for our customers will not increase as they receive energy produced from this renewable energy source. Also, this furthers the development of Oklahoma’s wind resource, and allows our customers to enjoy the environmental benefits of wind power.”
 
 “This is a competitively-priced agreement,” he added. “Competition in the wind energy industry in Oklahoma is increasing and helping to make wind power economical for customers.”
 
The company will include the cost of this purchased power in its fuel costs. Given the current cost of natural gas, this action could slightly reduce that portion of customers’ bills as it replaces the purchase of natural gas for power generation.
 
PSO, a unit of American Electric Power (NYSE: AEP), is an electric utility company serving more than 505,000 customers in eastern and southwestern Oklahoma.  Based in Tulsa, Oklahoma, PSO has more than 4,000 megawatts of generating capacity and offers some of the lowest energy prices in the United States.
 
AEP owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.