AEP buying 200MW of wind power

American Electric Power (NYSE: AEP) said today two of its subsidiaries signed long-term power purchase agreements to buy a total of 200 megawatts from the proposed Fowler Ridge Wind Farm in Indiana.

Fowler Ridge, owned by BP Alternative Energy, is expected to be online by the end of 2008.

"Although we've long had significant wind resources in our western generation portfolio, these two contracts represent the first commercial use of wind energy to serve the electricity demands of customers in our eastern seven-state footprint," said Michael Morris, chairman, president and CEO of AEP.

Columbus, Ohio-based AEP said today's deal is part of its larger plan to add 1,000 MW of new wind energy by 2011 (see AEP seeks proposals for 1,000 MW of wind power in eastern states).

In its April announcement, the company issued requests for proposals for up to 260 MW of wind energy for its Appalachian Power unit and up to 100 MW for its Indiana Michigan Power subsidiary.

Under today's agreements, the Appalachian Power and Indiana Michigan Power utilities signed 20-year deals to purchase 100 MW each of wind energy from Fowler Ridge.

Financial terms of the agreements were not disclosed.

AEP said it expects to additional power purchase agreements for Appalachian Power.

AEP currently owns two wind farms in Texas with a total capacity of 310 MW and has long-term contracts to purchase 467 MW of output from wind farms in Oklahoma and Texas.

The company, which serves more than 5 million customers in 11 states, owns more than 38,000 MW of generating capacity in the U.S.

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