OG&E inks deals for 280 MW of wind power

OG&E inks deals for 280 MW of wind power

* OG&E to add 280 MW of wind power

* Part of plan to triple wind power capacity by 2010

LOS ANGELES, Sept 29 (Reuters) – OG&E said on Tuesday that it agreed to buy power from two wind farms being built in Oklahoma as the utility seeks to more than triple its wind power capacity by the end of 2010.

The two new projects will give OG&E another 280 megawatts of wind power, bringing its total wind power capacity to 550 MW, enough to power 125,000 homes on an average day.

OG&E is a unit of Oklahoma City-based OGE Energy Corp (OGE.N).

Through a competitive bid process, OG&E picked projects with developers CPV Keenan and Edison Mission Energy, which will build wind projects of 150 MW and 130 MW, respectively.

The agreements with the developers are both 20-year power-purchase agreements. Under the deal, the developers will build, own and operate the facilities while OG&E will buy the generated electricity. The Oklahoma Corporation Commission must approve the agreements.

The company said that it expects to ask for more proposals from wind developers in the next few months as it looks to add more wind generation in 2011 or 2012.