PSO to Seek OCC Approval of Purchased Power Agreement

TULSA, Okla. – Public Service Company of Oklahoma (PSO), a subsidiary of American Electric Power (NYSE: AEP), and Exelon Generation Company LLC, a subsidiary of Exelon Corporation, have executed a long-term purchase power agreement (PPA) for which an application seeking its approval is expected to be filed with the Oklahoma Corporation Commission (OCC) in a matter of days. The PPA is for the purchase of up to 520 megawatts (MW) of electric generation from the 795-MW natural gas-fueled Green Country Generating Station, located in Jenks, Okla.

The agreement is the result of PSO’s 2008 Request for Proposals (RFP) for Supply-Side Capacity and Energy Resources. The RFP followed a December 2007 OCC order that found PSO had a need for new baseload generation by 2012.

In the filing, PSO will be seeking to recover costs of the purchased power, which PSO System Liaison Manager Steven Fate says will provide customers with significant savings over the term of the agreement.

“This agreement will save our customers millions of dollars a year over other alternatives considered as part of the RFP process,” Fate said. “In the selection of Exelon to help meet our future power generation needs, PSO has taken advantage of the current Oklahoma market to obtain this reliable, low-cost resource, which is good for our state and our customers.”

PSO customer bills will not be impacted until the delivery of the power starts on June 1, 2012. The PPA would extend until Feb. 28, 2022.

Once the application has been filed, the OCC will have six months to rule on it for the contract to take effect.