Jump to Navigation

Top Matters

Renewable Energy Team Advises American Electric Power in Wind Power Purchases

October 22, 2007

HOUSTON (October 22, 2007) — Attorneys from Bracewell & Giuliani LLP’s renewable energy group recently advised utility subsidiaries of American Electric Power Company (AEP), one of the nation’s largest generators of electricity, in the negotiation of three separate power purchase agreements for a total of 275 megawatts of wind power to be generated by wind farms located within or adjacent to AEP's service territory.

The agreements are part of AEP’s strategy to address its greenhouse gas emissions, and will allow the company to enhance the diversity of electric power being sold to its customers in four states.  Under the 20-year power purchase agreements, AEP subsidiary Indiana Michigan Power Company will purchase 100 megawatts from the Fowler Ridge Wind Farm in Indiana; Appalachian Power Company will purchase 100 megawatts from the same wind farm; and Appalachian Power Company also will purchase 75 megawatts from the Camp Grove Wind Farm in Illinois beginning at various times in 2008.  Upon approval by the Public Utility Commissions in the applicable states, these purchases will be included in the utilities' generation mix together with power generated by AEP's own power plants.

Houston partner Walter Keneally and New York senior associate Jay Sonnenberg led the Bracewell team.  “These three transactions posed numerous challenges, further enhancing our experience with renewable energy projects,” said Mr. Sonnenberg.  “Together with AEP and the counterparties, we worked together to develop a comprehensive agreement that AEP can use as it moves forward with additional wind energy purchases,” added Mr. Sonnenberg.

Commenting on a growing trend in the renewable energy field, Mr. Keneally noted that "Many other large utility companies have recently issued RFPs for renewable energy to meet state-mandated renewable portfolio standards (RPS).  To its credit, AEP issued this first RFP despite the absence of a mandatory RPS in any of the states that will be served by power purchased under these agreements." 

Houston partner Tom Tomlinson also assisted in the transactions.