Public Service Co. of Oklahoma (PSO), Oklahoma Industrial Energy Consumers (OIEC) and Walmart have reached a settlement agreement on PSO’s proposed 2 GW Wind Catcher Energy Connection project.
Together, PSO, OIEC and Walmart are requesting that the Oklahoma Corporation Commission approve the project under the terms of the settlement agreement – terms that collectively result in additional customer protections and significant savings guarantees, according to PSO.
PSO and Walmart first reached an agreement for approval of the project in March. The new agreement filed on Tuesday replaces that agreement and includes OIEC, a membership organization that comprises some of PSO’s largest users of electricity, as well as Walmart.
The new terms further ensure that customers will benefit from Wind Catcher by imposing additional limits on project construction costs, improving performance guarantees, and most notably, guaranteeing that customers will save money over at least the first 10 years, says PSO, adding that this provides certainty for customers even if natural gas prices stay at historically low levels and there are changes to federal tax law that affect the economics of the project.
In effect, the company says it is “guaranteeing to make customers whole” in the unlikely event that the project does not yield customer savings. Wind Catcher is expected to save PSO customers around $2 billion net of its costs over the 25 years the project is in service.
“We’re pleased to join Walmart and OIEC, two organizations representing some of our key business customers across the state, in asking the commission to approve Wind Catcher,” states Stuart Solomon, PSO’s president and chief operating officer. “With them on board, we’re hopeful the commission will approve Wind Catcher so that all PSO customers can save money from this major investment in Oklahoma clean energy.
When it comes online in late 2020, Wind Catcher is expected to be the lowest-cost energy on PSO’s system. Customers will see savings primarily through a reduction in the fuel portion of their bills. With Wind Catcher, PSO customers will receive 40% of their energy from Oklahoma wind resources.
The $4.5 billion Wind Catcher project includes the acquisition of a 2 GW wind farm under construction in the Oklahoma Panhandle near Guymon and a dedicated generation tie line to the Tulsa area, where the energy will be delivered to customers. The project is a partnership between PSO and sister company SWEPCO. PSO’s share of the project investment is $1.36 billion.
