COLUMBUS, Ohio, Nov. 1, 2004 -
American Electric Power (NYSE: AEP) today issued a Request for Proposals (RFP) for renewable energy to help fulfill energy-supply requirements for its retail customers in Arkansas, Louisiana, Oklahoma and Texas.
The proposals, for up to 250 megawatts of renewable generation within the Southwest Power Pool, are due Dec. 1, 2004. AEP expects to complete agreements with any successful bidders in March 2005.
AEP is seeking bids from renewable-energy providers that could place new generating facilities into service by Dec. 31, 2005.
“Extension of the federal Production Tax Credit program for renewable-energy sources that are operational by the end of 2005 provides a potential opportunity to procure cost-effective renewable energy to help meet the needs of customers of Public Service Company of Oklahoma and Southwestern Electric Power Company,” said Tom Hagan, executive vice president - AEP Utilities-West.
The federal Production Tax Credit (PTC) provides owners of renewable resources a tax credit equal to $18 per megawatt-hour for 10 years beginning on the facilities’ in-service date.
In June, AEP announced that Public Service Company of Oklahoma had signed a contract, contingent on passage of the federal PTC, to purchase up to 106.5 megawatts of Oklahoma-generated wind power for 20 years.
Generation technologies eligible to bid into the RFP include wind, solar, hydroelectric, geothermal, biomass and biomass-based waste products, including landfill gas.
The RFP and related information can be accessed at http://www.aep.com/go/RenewablesRFP.
American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation’s largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.
This report made by AEP and certain of its subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its registrant subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions; available sources and costs of fuels; availability of generating capacity and the performance of AEP’s generating plants; the ability to recover regulatory assets and stranded costs in connection with deregulation; new legislation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and other substances; resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for environmental compliance); oversight and/or investigation of the energy sector or its participants; resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp.); AEP´s ability to reduce its operation and maintenance costs; the success of disposing of investments that no longer match AEP´s business model; AEP´s ability to sell assets at acceptable prices and on other acceptable terms; international and country-specific developments affecting foreign investments including the disposition of any foreign investments; the economic climate and growth in AEP´s service territory and changes in market demand and demographic patterns; inflationary trends; AEP´s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas, and other energy-related commodities; changes in the creditworthiness and number of participants in the energy trading market; changes in the financial markets, particularly those affecting the availability of capital and AEP´s ability to refinance existing debt at attractive rates; actions of rating agencies, including changes in the ratings of debt and preferred stock; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including the establishment of a regional transmission structure; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP´s pension plan; prices for power that AEP generates and sells at wholesale; changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.