SHREVEPORT, La. (Dec. 18, 2024) – Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power (Nasdaq: AEP), is excited to announce the ongoing development of several new generation projects, pending regulatory approval.
These initiatives are designed to enhance SWEPCO's diverse energy portfolio by adding natural gas facilities alongside new wind and solar farms, addressing the growing capacity demands of our customers in a cost-effective manner.
As part of the company’s vision to improve customers’ lives with reliable and affordable power, today’s announcement includes future development of a 450-Megawatt (MW) natural gas plant to be located at a previously retired plant site in Hallsville, Texas.
Natural gas is the leading fuel for electric generation nationwide, accounting for 48% of SWEPCO’s existing power generation portfolio. Its turbines offer a reliable and dispatchable energy source, capable of ramping up within minutes.
Due in large part to the evolving reserve requirements set by the Southwest Power Pool, SWEPCO anticipates an increasing capacity need. Integrating these generation plants is essential to meet customer needs both now and in the future.
New Proposed Natural Gas Projects:
- 450-MW Hallsville Natural Gas Plant: SWEPCO is initiating a transformative project at the site of the retired H.W. Pirkey Power Plant. This facility is expected to begin operations in 2027, pending regulatory approval from utility regulators in Arkansas, Louisiana, and Texas, as detailed in filings submitted on Dec. 17. The Hallsville Natural Gas Plant will feature two General Electric combustion gas turbine generators and will utilize existing water intake structures and site infrastructure to minimize project costs.
- 1,053-MW Welsh Natural Gas Conversion Project: On Dec. 17, SWEPCO also submitted filings for a fuel conversion project at the Welsh Power Plant, located northwest of Cason, Texas. Pending regulatory approval, this initiative will convert the existing coal-fired boilers of Units 1 and 3 to burn natural gas, with Unit 1 conversion anticipated in 2028 and Unit 3 in 2027.
Renewable Projects Under Construction
- 200-MW Diversion Wind Farm: Located in Baylor County, Texas and scheduled to begin operations in December 2024.
- 598-MW Wagon Wheel Wind Facility: This project, spanning Garfield, Kingfisher, Logan, Payne, and Noble counties in Oklahoma, is making steady progress, with officials estimating it to be operational in December 2025.
- 72.5-MW Rocking R Solar Facility: SWEPCO’s first utility scale solar energy resource is nearing completion in Caddo Parish, Louisiana. SWEPCO will not own this facility and will instead purchase the output of the facility via a purchase power agreement. The solar farm will generate enough energy to power approximately 12,000 homes each year.
Through these strategic initiatives, SWEPCO is committed to ensuring a reliable energy supply while effectively meeting the evolving needs of our customers.
“The future growth of new technologies and continued service to our customers are priorities that will require a diverse generation portfolio,” stated Brett Mattison, SWEPCO President and Chief Operating Officer. “As we enter this era of technological transformation, our customers need an energy system capable of delivering reliable, affordable, and environmentally sustainable power whenever and wherever it is needed. Each of these projects represents an important addition to our generation fleet in service to our customers.”
In addition to these projects, SWEPCO has selected a short-term capacity agreement with a natural gas facility in Texas as part of a competitive bid process. The agreement will help serve as a bridge to more permanent resource additions.
“Through these endeavors, SWEPCO remains dedicated to providing a robust energy supply that meets the dynamic electricity demands of the communities we serve,” Mattison added.