SHREVEPORT, LA – Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power (Nasdaq: AEP), is pleased to announce the ongoing development of a new generation of projects pending regulatory approval. These initiatives are aimed at strengthening SWEPCO’s diversified energy portfolio with the addition of natural gas capacity and meeting customers’ capacity demands in a cost-effective manner.
“Future growth in new technologies and continued service to our customers are priorities that require a diversified power generation portfolio,” said Brett Mattison, president and chief operating officer of SWEPCO. “Today’s announcement helps us realize our commitment to providing reliable, affordable and available power whenever and wherever you need it.”
As part of SWEPCO’s commitment to the community, today’s announcement includes future development at a decommissioned facility in Hallsville, Texas, with a 450 megawatt (MW) natural gas plant. This includes converting two coal-fired burners to natural gas at the Wales Generating Station near Cason, Texas, pending regulatory approval.
“We are excited to breathe new life into our Hallsville site and further strengthen our energy portfolio by aggressively expanding services from our Wales factory, ensuring we can meet our customers’ needs and offer a diversified energy portfolio. I’m excited about it,” added Mattison.
Dispatchable generation refers to energy sources such as natural gas that grid operators can control based on demand. This means that if electricity consumption increases, operators can quickly increase production from these resources to meet their needs. As electricity demand continues to grow, the reliability and stability of distributable power generation becomes increasingly important.
Natural gas is the primary fuel for power generation across the United States and accounts for 48% of SWEPCO’s existing power generation portfolio. Its turbines provide a reliable and deliverable energy source that can be activated within minutes.
Each of SWEPCO’s power projects is an important addition to our diverse power generation fleet serving our customers. Integration of these power plants is essential to meeting current and future customer needs.
“Texas must have a force we can rely on when we need it,” said Sen. Brian Hughes. “SWEPCO is giving us that. They are expanding energy production for the future, repurposing existing facilities in East Texas, and using clean, reliable natural gas as a power source. We are grateful for these investments that support our economy and power grid.”
State Representative Jay Dean said dispatchable power generation is essential not only to ensure a reliable energy supply but also to foster economic growth in local communities.
“By investing in these energy projects, we are creating local jobs and supporting our workforce while providing the reliable power that businesses and families rely on,” he said. “This commitment to a diverse energy portfolio will help strengthen our economy and ensure a brighter future for all Texans.”
“Texas continues to add more reliable, dispatchable power to meet our state’s growing demands and maintain an economy that is the envy of the nation,” said Governor Greg Abbott. said. “These two SWEPCO natural gas plants are critical components to meeting our requirements.
It will help meet the state’s growing electricity needs and provide Texans with the power they need to power their homes and businesses. SWEPCO’s commitment to providing reliable, affordable and dispatchable energy will help continue to power a bigger and better Texas for generations to come. ”
Newly proposed natural gas projects:
• 450-MW Hallsville Natural Gas Power Plant: SWEPCO is beginning a transformation project at the site of the decommissioned HW Purkey power plant. The facility is scheduled to open in 2027, pending regulatory approval from utility regulators in Arkansas, Louisiana and Texas, as detailed in a Dec. 17 filing. is scheduled to start. Leverage existing intake structures and site infrastructure to minimize project costs.
• 1,053-MW Wales Natural Gas Conversion Project: On December 17, SWEPCO also filed an application for a fuel conversion project at the Wales Power Plant located northwest of Caisson, Texas. The initiative, which is pending regulatory approval, will convert existing coal-fired boilers in units 1 and 3 to fire natural gas, with conversion of unit 1 scheduled for 2028 and conversion of unit 3 in 2027. are.
In addition to these projects, SWEPCO has selected short-term capacity contracts with natural gas facilities in Texas as part of a competitive bidding process. This agreement would provide a bridge to more permanent resource additions.
