Through the 20-year agreement, Appalachian Power will purchase all of the output -- between 100 and 147 megawatts -- from the first phase of the planned 186-megawatt Beech Ridge Energy wind project currently under development in Greenbrier County, W.Va.

The wind farm is expected to be on line by March 31, 2010. The agreement is subject to approval from the Public Service Commission of West Virginia and extension for 2009 of the federal production tax credit for renewable energy. Pricing terms are confidential.

"Wind and other renewables are becoming an integral part of the diverse power generation mix necessary to meet our customers' electricity needs," said Michael G. Morris, AEP's chairman, president and chief executive officer.

"Adding these renewable generation resources, along with our plans for new baseload generation using clean coal and other technologies, positions us to continue to meet our customers' needs while also reducing our carbon footprint."

The new agreement is part of AEP's voluntary plans, announced in 2007, to add 1,000 megawatts of new wind energy by 2011 as a component of the company's comprehensive strategy to address its greenhouse gas emissions. The addition of wind capacity to AEP's energy portfolio avoids an increase in greenhouse gas emissions that would otherwise occur if AEP used traditional fossil generation to meet growing customer demand.

"The agreement with Beech Ridge Energy brings our long-term renewable-energy purchase commitments up to 422 megawatts in the year since we established our 1,000-megawatt goal," Morris said. "We have additional requests for proposals out for up to 600 megawatts of renewable energy, so we are well on the way to meeting that goal.

"When you add our wind capabilities that were in place prior to the establishment of the goal (310 megawatts of wind generation in Texas owned by AEP and 367 megawatts of long-term wind-energy purchase agreements in Texas and Oklahoma), it's clear that our energy portfolio now includes a significant amount of renewable energy," Morris said.

The agreement with Beech Ridge Energy is the third long-term wind-energy purchase agreement for Appalachian Power, providing renewable energy for use by its customers in West Virginia, Virginia and Tennessee. Last year, Appalachian Power announced two agreements for a total of 175 megawatts of wind energy.

"This is our third long-term agreement for wind energy, but it's the first with a wind farm located in the states served by Appalachian Power," said Dana Waldo, president and chief operating officer of Appalachian Power.

"The agreement to purchase power from a wind generation facility located in West Virginia is an important development for the state and for our company. It aligns with a commitment to renewable energy made by West Virginia Gov. (Joe) Manchin in a speech last week and with legislation signed by Virginia Gov. (Tim) Kaine last year."

Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power).

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