Haynes and Boone, LLP advised Public Service Company of Oklahoma (PSO) in the negotiation of agreements to buy about 600 megawatts of power from wind farms being erected in northwest Oklahoma and the state’s panhandle.
Houston Partner Walter Keneally counseled leaders of the renewables division of American Electric Power, PSO’s parent, in developing the long-term Renewable Energy Purchase Agreements totaling 598.7 megawatts energy from wind farms near Seiling, Balko and Goodwell beginning Jan. 1, 2016. The 20-year agreements are subject to approval by the Oklahoma Corporation Commission.
The transactions stem from a result of a Request for Proposals issued in June for long-term purchases of up to 200 MW of new wind energy resources. The decision to contract for an additional 400 MW was based on extraordinary pricing opportunities that will lower PSO customer costs by about $53 million in the first year of the contracts, according to the company.
Annual savings are expected to grow each year over the lives of the contracts.
Wind resources in Oklahoma rank it ninth in the nation. As of December 2012, the state was consuming 3,130 megawatts of wind-generated power. The new agreements will push the state’s total wind generation to about 4,000 megawatts.
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