Southwestern Electric Power Co., an American Electric Power (Nasdaq: AEP) company, has received approval by the Louisiana Public Service Commission (LPSC) to move forward with its fuel-free power plan to acquire up to 999 megawatts (MW) of renewable generation resources.
The LPSC today approved the terms of a settlement agreement reached on March 10, 2023, by all parties in the proceeding, subject to certain procedural conditions moving forward. This effort will help meet projected power needs while protecting customers from volatility in energy costs.
The additional generating capacity is necessary to meet the energy needs of SWEPCO 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 Louisiana, Arkansas and Texas.
“SWEPCO’s analysis of our generation needs showed that the lowest cost, best value option for capacity was adding wind and solar resources,” said Brett Mattison, SWEPCO president and Chief Operating Officer. “We appreciate our regulatory commissioners allowing us to bring more low-cost, renewable energy to Louisiana customers.”
