May 29 2008
American Electric Power operating unit AEP Ohio today issued a request for proposals (RFP) seeking long-term purchases of up to 300 megawatts (MW) of renewable energy resources.
According to the RFP, proposals must rely on commercially proven technologies for renewable energy, including wind, hydro, solar photovoltaic or solar thermal, geothermal, biologically derived methane gas and certain biomass energy projects. The generation must be interconnected to the PJM Interconnection and operational no later than Dec. 31, 2010.
A pre-bid conference call for potential bidders will be conducted June 12 with proposals to be submitted by July 15. RFP information can be found at http://www.AEPOhio.com/go/rfp .
The renewable RFP is part of AEP's goal -- announced in 2007 -- to add 1,000 MW of new wind or renewable energy by 2011 as a component of the company's comprehensive strategy to address its greenhouse gas emissions. The addition of renewable energy to AEP's energy portfolio avoids an incremental increase in greenhouse gas emissions that would otherwise occur if AEP used traditional fossil generation to meet growing customer demand.
"This RFP continues our commitment to adding renewables to our generation portfolio and will help ensure that we have renewable energy resources in place consistent with Ohio's new advanced energy policies," said Michael G. Morris, AEP chairman, president and chief executive officer. "One of the issues we will continue to grapple with as a nation is the desire to develop renewable energy resources and the realization that it will be more costly than traditional electricity generation methods. The new Ohio bill recognizes this with mechanisms to address the impact on the Ohio economy if cost-effective renewable generation does not develop to serve Ohio customers.
"Expansion of renewable power also will require significant transmission infrastructure investment to move it from where it can be produced to population centers. On a national level, we need policies that encourage development of extra-high voltage transmission to transport renewable energy and a long-term commitment to production tax credits to make renewable energy less costly," Morris said.
AEP has issued RFPs in the last two months seeking 665 MW of renewable energy. In addition to the AEP Ohio RFP, AEP is seeking 200 MW of renewable energy to serve its Public Service Company of Oklahoma customers, 65 MW of renewable energy to serve its Southwestern Electric Power Company customers and 100 MW of renewable energy to serve its Appalachian Power customers. The company has completed three purchases of long-term renewable energy capacity since making its 1,000-MW commitment in 2007. The three purchases, all of wind energy, added 275 MW of renewable capacity to serve AEP's customers in Indiana, Michigan, West Virginia, Virginia and Tennessee.
AEP's wind portfolio -- prior to the recent RFPs -- is 1,052 MW, which includes 310 MW of wind generation owned by AEP in Texas, 476.5 MW of long-term wind purchase agreements reached before the company's 2007 commitment and 275 MW of wind purchase agreements made last year.
AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia.