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Despite Texas denial, AEP to buy $2B in wind energy

The Business Journals

Undaunted by a legal ruling in Texas, American Electric Power Company Inc. says it will continue investing in renewable energy in the region. On July 2, the Public Utility Commission of Texas denied a request by AEP affiliate Southwestern Electric Power Co. to use its Texas customers' rates to finan...


Gary Hilberg's picture
Gary Hilberg on Jul 8, 2020 1:21 pm GMT

Very interesting that three of four states allowed the use of the rate base to finance this generation.  AEP gets low cost capital and the opportunity make a rate of return on the assets in the traditional utility model.  The customers get renewable energy whether they value it or not.  At this scale the costs are probably pretty competitive and AEP is still providing the firm utility service that customers expect.  Invenergy cashs out and goes on to develop more facilities.  Would be interesting to see how many GW of wind are now in the regulated rate base national wide.

Matt Chester's picture
Matt Chester on Jul 8, 2020 4:39 pm GMT

Great points, Gary. I didn't see any resources after a quick Google to answer the question about level of wind generation in the regulated rate base-- perhaps that would be a good question to submit to the Energy Central Q&A?

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