The Oklahoma Corporation Commission (OCC) has approved cost recovery for three wind power purchase agreements recently signed by Public Service Co. of Oklahoma (PSO).
The contracts, totaling 600 MW, are for NextEra Energy Resources' Seiling Wind project, TradeWind Energy's Goodwell Wind project, and Apex Clean Energy's Balko Wind project.
According to PSO, estimates show the agreements will reduce customer costs by $53 million in the first year, with annual savings growing over the 20-year length of the contracts.
"These contracts were based on extraordinary pricing opportunities that will provide substantial savings for our customers," says Stuart Solomon, PSO president and chief operating officer. "Another benefit is the diversity that an additional 600 MW of Oklahoma wind energy will bring to our fuel mix."
PSO issued a request for proposals in June 2013 seeking up to 200 MW of new wind energy resources. The utility says the decision to contract for an additional 400 MW was based on all-time-low prices for wind power. When deliveries of energy from the three new wind contracts commence in 2016, PSO's total wind under contract will be 1.137 GW.