Dive Brief:
- The Georgia Public Service Commission approved a Georgia Power PPA for 250 megawatts of wind-generated electricity from two Oklahoma wind projects.
- The EDP Renewables North America PPA price for the wind-generated electricity was approved by the PSC because it is lower than Southern Company subsidiary Georgia Power’s avoided cost, so it will prevent upward pressure on the utility’s rates and make the contract a good deal for shareholders and customers.
- Renewables advocates applauded the PSC’s approval of the wind-generated electricity purchase, which will be delivered starting in 2016.
Dive Insight:
Georgia Power Spokesperson John Kraft recently told this reporter the utility is more focused on solar and nuclear power to meet its customers’ future energy needs because the state does not have a good wind resource.
The decision to import wind-generated electricity contracted at a twenty year fixed rate validates the finding in a recent LBNL study that wind serves as an effective hedge against price volatility for fossil fuel-dependent utilities.
The electricity will be delivered through the Southwest Power Pool regional transmission system.
The Georgia Power wind purchase follows prior buys of Midwest and Plains wind by fellow Southern Company subsidiary Alabama Power, by the Tennessee Valley Authority, and by Southwestern Electric Power.
