We expect renewable energy to become an increasingly larger piece of our energy portfolio. Eight states where we operate have laws or regulatory orders that set forth requirements or goals for renewable and alternative energy sources. These are Indiana, Louisiana, Michigan, Ohio, Oklahoma, Texas, Virginia and West Virginia. The requirements in Indiana, Oklahoma and Virginia are voluntary whereas the others are mandatory.
As a result, AEP has been steadily increasing its renewable energy portfolio during the last several years through renewable energy power purchase agreements (REPAs). AEP’s operating companies currently have nearly 2,000 MW of REPAs delivering renewable energy to the operating companies. In addition to these in-service resources, other resources under development or whose contract is set to expire in the near term include the following:
- One wind REPA (200 MW) for Indiana Michigan Power Company is scheduled to begin deliveries in late 2014. This REPA was the result of a modification of the New Source Review Consent Decree.
- One wind REPA (151 MW) for Public Service Company of Oklahoma (PSO) is scheduled to expire at the end of 2015.
- PSO will begin to receive deliveries in early 2016 from three wind projects (599 MW) currently under development in Oklahoma. The addition of these purchases will increase PSO’s total wind under contract to 1,137 MW.
- One biomass REPA (58.5 MW) for Kentucky Power Company is scheduled to begin deliveries in 2018. This biomass REPA was approved by the Kentucky Public Service Commission in 2013 but is currently on appeal before the Franklin County Circuit Court.