- Public Service Co. of Oklahoma (PSO) said Thursday it signed deals for 600 megawatts (MW) of wind power from three projects in the state. The 20-year contracts stem from a solicitation the Tulsa-based unit of AEP made in June. Pricing details were not disclosed.
- The amount is three times more than what the utility had sought, PSO said in a statement, citing "extraordinary pricing opportunities" in the market that will lower utility costs by an estimated $53 million in the first year and even more thereafter.
- The deals involve the planned 199.8-MW Apex Clean Energy Balko wind farm; the 198.8-MW NextEra Energy Resource's Seiling project; and the 200-MW Goodwell project being developed by TradeWind Energy. Oklahoma regulators must approve the contracts. The utility will take delivery of the power by Jan. 1, 2016.
The PSO deal is only the latest in a string announced by utilities in the past year where the prices offered in the market for wind power compete favorably over the long term with fossil-fueled baseload generation. The deals also seems to confirm research by Bloomberg New Energy Finance that found the cost of electricity from onshore wind would drop 12% by 2016 thanks to a mix of lower-cost equipment and gains in output efficiency.