Southwestern Electric Power Co. (SWEPCO), part of American Electric Power (NASDAQ: AEP), is taking significant steps to develop the site of the former H.W. Pirkey Power Plant with a series of new energy Requests for Proposals (RFPs). The dismantling of the old plant's stacks and boiler is currently underway, facilitating future innovations at the decommissioned facility located in Hallsville, Texas.
The H.W. Pirkey plant began its operations on January 3, 1985, on a snowy day, serving the needs of SWEPCO customers and the Hallsville area for nearly four decades. As SWEPCO's inaugural lignite-fired power plant, it was named after Henry W. Pirkey, Jr., the company's President from 1965 to 1972. The plant generated 675 megawatts of power until its retirement in 2023, following the announcement made in 2020.
Energy Industry Transition
Upon the announcement of Pirkey's closure, SWEPCO quickly initiated efforts to ease the transition for both employees and the local community. Partnering with the Just Transition Fund, SWEPCO helped form the Pirkey Transition Task Force.
This group, composed of over two dozen local leaders, organizations, school districts, and business owners, met bi-weekly to collect data, establish priorities, engage the community, and craft a strategic action plan. Although SWEPCO was an active participant, the dialogue was community-driven, marking a novel approach within the energy industry.
New Requests for Proposals
SWEPCO has announced three RFPs aimed at securing additional generation and capacity resources. Brett Mattison, SWEPCO President and COO, stated, “We know customers need an energy system that is available to deliver reliable, affordable, and environmentally sustainable power where and when they need it.”
He emphasized the necessity of a diverse generation portfolio to meet current and future energy demands through additional, dispatchable generation resources. In January, the company sought proposals for these resources, intending to meet both customer needs and maintain the planning reserve margin requirements of the Southwest Power Pool.
The RFPs cover potential resources of up to 2,100 megawatts of accredited capacity, including natural gas, wind, solar, and storage solutions. According to Mattison, “Readying the Hallsville site allows us to advance our goals for our energy delivery system and further diversify SWEPCO’s generation resource mix.”
Competitive Reviews and Future Steps
Presently, competitive reviews are ongoing to evaluate potential partners and proposals. SWEPCO is looking to proceed with various procurement methods, such as purchase and sale agreements (PSA), power purchase agreements (PPA), and capacity purchase agreements (CPA).
Post-selection from the RFPs, SWEPCO will pursue the necessary regulatory approvals to operationalize the new resources.
