American Electric Power seeks Public Utilities Commission approval for 400 MW solar projects

AEP Ohio, an American Electric Power company, has announced that it has filed a proposal with the Public Utilities Commission of Ohio (PUCO) to support the development of 400 MW of new solar generation resources in Ohio (USA) by purchasing renewable power for AEP Ohio customers. The 300 MW and 100 MW facilities will be constructed in Ohio’s Appalachian region in Highland County.

The 300 MW Highland Solar and 100 MW Willowbrook Solar projects were chosen following a competitive request for proposal (RFP) process. They are being developed and will be owned by Hecate Energy Highland LLC and Willowbrook Solar LLC, respectively. Both projects are expected to be operational by the end of 2021, pending regulatory approvals.

Construction of these facilities is expected to support nearly 4,000 jobs in total and contribute US$24 million in new state tax revenue and US$6.7 million in local tax revenue. The developers have committed to securing building materials from Ohio manufacturers, and military veterans will be given hiring preference for construction-related jobs.

AEP Ohio has secured two 20-year Renewable Energy Purchase Agreements (REPAs) for the power produced at these facilities. Over the life of these fixed-price agreements, it is anticipated that customers will see approximately US$200 million in savings compared with the projected cost of power in the future.

All AEP Ohio customers will share in the benefits of these new renewable generation resources. A residential customer using 1,000 kilowatt hours of electricity will see a US$0.28-per-month increase in their electric bill.

The PUCO must evaluate the proposal and issue a decision before construction can begin.