Jun. 29--Public Service Company of Oklahoma, Tulsa's chief supplier of
electricity, could become the largest wind power provider in the state under
plans announced Monday. PSO, which serves 285,000 customers in the Tulsa area, has agreed to purchase
106.5 megawatts -- enough to power 31,000 homes -- under a 20-year contract from
a wind farm planned near Weatherford in western Oklahoma, where the wind often
blows at incredible speeds. But the project will not proceed unless Congress approves the extension of a
federal tax credit for wind power production. Extension of the 1.8-cent per kilowatt hour credit was contained in the
controversial energy bill, which has repeatedly stalled amid fierce debate
between Democrats and Republicans. The provision has since been pulled from the
energy bill and placed into House and Senate versions of a corporate tax bill. "The two bills need to go to conference," a spokeswoman for the
American Wind Energy Association said. "The negotiations are likely to take
a while." Mike Bergey, a member of the Oklahoma Renewable Energy Council, questions
whether the extension will pass, citing election-year politics. "Congress is so dysfunctional right now," Bergey said. The proposed wind farm, known as the Weatherford Wind Energy Center, would
include 71 wind turbines on a 3,800-acre site. Florida Power and Light, the
nation's top wind farm developer, would construct the facility. The project will not lead to higher rates for PSO customers, said Stuart
Solomon, president and chief operating officer of PSO. "This is a competitively priced agreement," Solomon said in a
prepared statement. "Competition in the wind energy industry in Oklahoma is
increasing and helping to make wind power economical for customers." Oklahoma is the eighth windiest state in the nation, according to AWEA. Oklahoma Gas & Electric Co., the state's largest electric utility, began
providing wind power to customers on a voluntary basis last year. The Oklahoma
Municipal Power Authority and Western Farmers Electric Cooperative, which serves
19 Oklahoma cooperatives, also began supplying wind power to their customers
last year. Nearly 9,000 OG&E customers are subscribing to the utility's wind power
option. The goal is 10,000, a company spokeswoman said. The PSO project would be the state's third major wind farm. The first two
were completed last year. Wind power from OG&E and OMPA is produced at the Oklahoma Wind Energy
Center, a 102 megawatt wind farm near Woodward. WFEC, which delivers electricity
to 500,000 customers, buys its 74.25 megawatts of wind power from the Blue
Canyon Wind Farm northwest of Lawton. The PSO agreement could lower costs for its customers because the cost of
wind-generated electricity is well below the cost of conventional power
supplies, Bergey said. "Wind power is just about the cheapest form of electric
generation," Bergey said. About 40 percent of PSO's power supplies are produced with natural gas, whose
price has risen substantially in recent months. Those fuel costs are passed on
to PSO customers. There are no fuel costs associated with wind power. The PSO deal could help
protect customers from spikes in natural gas prices, Bergey said. The PSO project would be Florida Power and Light's second wind farm project
in Oklahoma. FPL built the Oklahoma Wind Energy Center near Woodward last year. In a separate matter, the Oklahoma Corporation Commission approved a
settlement Monday that establishes additional quality-of- service standards for
PSO. Specific requirements were approved for PSO due to a rise in consumer
complaints after American Electric Power acquired PSO in June 2000, said Denise
Bode, commission chairman. "We're going to require a lot more detail from them because of the
problems we've had," Bode said. The additional requirements call for the reporting of more information
related to customer service, repairs and reliability. PSO is a subsidiary of Columbus, Ohio-based AEP, the nation's largest
generator of electricity. The PSO system serves 505,000 customers.
Visit http://www.powermarketers.com/index.shtml for excellent coverage on your energy news front.