SWEPCO seeks bids for new generation

SHREVEPORT, La., Dec. 9, 2005 – Southwestern Electric Power Company (SWEPCO) is seeking proposals for new generation to supplement existing power supply resources to effectively meet customers’ energy needs. The final Request for Proposal (RFP) to add new generation through a competitive bid process was submitted to the Louisiana Public Service Commission (LPSC) on Dec. 8, 2005. A draft RFP was previously submitted in September. The final RFP is the culmination of a process outlined by the LPSC’s Market-Based Mechanism Order, wherein the company received questions and comments from the LPSC Staff and interested parties. All questions, comments and company responses can be found at http://www.swepco.com/go/rfp

The RFP seeks solutions to SWEPCO’s short-term and long-term capacity needs. The short-term portion of the RFP requests proposals to meet the peaking requirements of 2006 through 2009. In addition, SWEPCO is soliciting new resources to satisfy the company’s long-term capacity and energy requirements. The company’s “self-build” options will be considered for long-term capacity.

“It has been more than 20 years since the company last brought new generating facilities on line,” said Nick Akins, SWEPCO president and chief operating officer. “Customer growth in SWEPCO’s three-state service territory is the reason for our seeking new capacity through the RFP process at this time,” Akins continued.

SWEPCO seeks the following resource or product types:

  • Up to 500 megawatts of new peaking capacity and associated energy by 2008;
  • Up to 500 megawatts of intermediate capacity and associated energy by 2010; and,
  • Up to 600 megawatts of base load capacity and energy by 2011.

Potential site reviews continue and multiple technologies for base load capacity, including integrated gasification combined-cycle (IGCC), pulverized coal and circulating fluidized bed combustion, will be evaluated.

“The competitive bid process ensures SWEPCO’s need for additional capacity will be met in an efficient, fair and cost-effective manner,” said Akins.

SWEPCO, a unit of American Electric Power, is an electric utility company serving approximately 442,000 customers in northwest Louisiana, East Texas and the western edge of Arkansas. Based in Shreveport, SWEPCO has more than 4,480 megawatts of generating capacity and offers some of the lowest energy prices in the United States.

SWEPCO’s parent company, American Electric Power (NYSE: AEP), owns more than 36,000 megawatts of generating capacity in the United States and is the nation´s largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.
Mike Young
Manager, Corporate Communications

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