AEP Buys Enron West Texas Wind Farm

Indian Mesa Wind Power Project acquired for $175 million.

Published: 31-Dec-2001

NEW YORK, Dec 31 - American Electric Power (AEP) said Monday it acquired the 160-megawatt (MW) Indian Mesa Wind Power Project in West Texas from Enron Wind Corp. of California for $175 million.

Under the terms of the agreement, AEP will fulfill previously announced power supply arrangements with City Public Service (CPS), the municipal electric utility for San Antonio, Texas.

CPS will buy all the power generated from the plant, enough to power 54,000 Texas homes, under long-term agreements, AEP said in a statement.

Enron Wind, a subsidiary of collapsed energy trading group Enron Corp. (NYSE:ENE), will continue to provide operations and maintenance services at the plant, located near Iraan, Texas, 45 miles east of Fort Stockton.

An AEP spokesman told Reuters that Enron Wind was not named in the recent bankruptcy filing by Enron Corp.

The addition of the Indian Mesa project adds to the recently completed 150-MW Trent Mesa Wind Project, also in West Texas and furthers the company's goal of enhancing the renewable portion of its overall generation portfolio, Dwayne Hart, senior vice president of business development for AEP subsidiary, AEP Energy Services said.

The acquisition will be funded internally, AEP said, but the company intends to seek project financing at a later time.

The company said the acquisition will be accretive to earnings, but did not elaborate.

The project, completed this month, was developed and built by Enron Wind, a fully-integrated wind power company that also supplied wind turbines to the Trent Mesa project.

Columbus, Ohio-based AEP provides retail electricity to more than 7 million customers worldwide.

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