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AEP utility Appalachian Power issues rfp for renewable energy resources


COLUMBUS, Ohio.– American Electric Power (NYSE: AEP) subsidiary Appalachian Power issued a request for proposals today seeking long-term purchases of up to approximately 100 megawatts of new renewable energy resources to be operational by the end of 2010.

According to the RFP, proposals must rely on commercially proven technologies for renewable energy, including wind; solar photovoltaic; biomass firing or co-firing of agricultural crops and all energy crops; hydro (as certified by the Low Impact Hydropower Institute); coal mine methane; landfill gas; biogas digesters; or biomass firing or co-firing of crop residues, animal waste and woody waste.

Expression of interest forms are due by April 30, with proposals to be submitted by May 30. The company expects the successful bidder to be selected and contracts in place by September. RFP information can be found at .

The RFP is part of AEP’s voluntary plan – announced in 2007 – to add 1,000 megawatts of new wind or renewable energy by 2011 as a component of the company’s comprehensive strategy to address its greenhouse gas emissions. The addition of renewable energy to AEP’s energy portfolio avoids an increase in greenhouse gas emissions that would otherwise occur if AEP used traditional fossil generation to meet growing customer demand.

“We are committed to increasing the wind and other renewable energy in our generation mix as part of our comprehensive climate strategy,” said Michael G. Morris, AEP’s chairman, president and chief executive officer. “Even with the growth, renewables - in the near term - will remain a small percentage of our total available capacity used to meet the day-to-day power needs of our customers, but they are of crucial importance to address the increasing concerns about the planet’s changing climate.”

AEP has made three purchases of long-term renewable energy – two by Appalachian Power – since the company made its 1,000-megawatt commitment in 2007. The previous two Appalachian Power purchases, both of wind energy, added 175 megawatts of renewable capacity for the utility that serves about 1 million customers in West Virginia, Virginia and Tennessee. Another AEP utility, Indiana Michigan Power, has added 100 megawatts of long-term wind energy, bringing AEP to within 725 megawatts of its commitment.

“Seeking additional renewable energy resources for Appalachian Power’s customers is part of a broader portfolio of energy solutions we are implementing as part of our climate efforts,” said Dana Waldo, president and chief operating officer of Appalachian Power. “Regulators in West Virginia recently approved our plans to build a fully commercial Integrated Gasification Combined Cycle (IGCC) clean-coal power plant, a project that will push that important technology into the commercial mainstream. We will begin construction once we get the necessary approval in Virginia.

“The first large-scale validation of carbon-capture and storage technology will take place on one of our plants in West Virginia,” Waldo said. “The nation’s first utility-scale energy storage system is on an Appalachian Power facility near Charleston. And, through AEP, we continue to push for improvements in energy efficiency, including the development of systems to enable customers to make wise energy decisions.”

AEP’s wind portfolio – prior to this most-recent RFP – is 1,050 megawatts, which includes 310-megawatts of wind generation owned by AEP in Texas, long-term wind purchase agreements reached before the company’s 2007 commitment and agreements reached after the 2007 commitment.


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