AEP buying 75MW of wind from Orion

Columbus, Ohio-based American Electric Power (NYSE: AEP) announced today that it signed a long-term agreement for 75 megawatts of wind power from Orion Energy, a unit of BP Alternative Energy.

Under the 20 year agreement, subject to approval from the Public Service Commission of West Virginia, AEP unit Appalachian Power will purchase the wind power from the 150 MW Camp Grove Wind Farm currently under construction near Camp Grove, Ill.

The wind farm is expected to be on line by the end of 2007.

"As we evaluate how to balance the growing electricity demands of our customers with our commitment to addressing our greenhouse gas emissions, wind energy can play an important role," said Michael Morris, AEP chairman, president and CEO.

AEP, which said the deal is part of a larger plan to add 1,000 megawatts of new wind energy by 2011, did not disclose financial terms of the agreement.

The company issued requests for proposals in April for up to 260 megawatts of wind energy for Appalachian Power and up to 100 MW of wind energy for its Indiana Michigan Power utility unit.

In August, AEP announced that both subsidiaries had signed long-term power purchase agreements for a total of 200 MW from the proposed Fowler Ridge Wind Farm in Indiana (see AEP buying 200MW of wind power).

The company said it expects to enter into additional power purchase agreements for Appalachian Power for up to another 100 MW of wind energy.