SHREVEPORT, La. (Dec. 18, 2024) – Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power (Nasdaq: AEP), is excited to announce the ongoing development of new generation projects, pending regulatory approval. These initiatives are designed to enhance SWEPCO's diverse energy portfolio by adding natural gas facilities, addressing the capacity demands of our customers in a cost-effective manner.

“The future growth of new technologies and continued service to our customers are priorities that will require a diverse generation portfolio,” stated Brett Mattison, SWEPCO President and Chief Operating Officer. “Today’s announcement helps deliver on our commitment to delivering reliable, affordable, and dispatchable power whenever and wherever it is needed.”

As part of SWEPCO’s commitment to our communities, today’s announcement includes future development at the decommissioned facility in Hallsville, Texas, that will feature a 450-Megawatt (MW) natural gas plant. It would also include the conversion of two coal-fired burners to natural gas at the Welsh Power Plant near Cason, Texas, pending regulatory approval. 

“We’re excited to bring new life to the Hallsville site and proactively extend the service from our Welsh plant to further enhance our energy portfolio, ensuring we’re meeting our customers' needs and providing a diverse energy portfolio,” Mattison added.

Dispatchable generation refers to energy sources, like natural gas, that grid operators can control based on demand. This means that when electricity consumption rises, operators can quickly ramp up production from these resources to meet the need. The reliability and stability of dispatchable generation are increasingly important as the demand for electricity continues to grow.

Natural gas is the leading fuel for electric generation nationwide, accounting for 48% of SWEPCO’s existing power generation portfolio. Its turbines offer a reliable and dispatchable energy source, capable of ramping up within minutes.

Each of SWEPCO’s generation projects represents an important addition to our diverse generation fleet in service to our customers. Integrating these generation plants is essential to meet customer needs both now and in the future.

“Texas must have reliable power that is there when we need it,” said Senator Bryan Hughes. “SWEPCO is giving us that. They're expanding energy production for the future, repurposing existing facilities in East Texas, and using clean, reliable natural gas as the power source.  I'm grateful for these investments to support our economy and the grid.”

Dispatchable generation is vital not only for ensuring a reliable energy supply but also for driving economic growth in our communities, said state Representative Jay Dean.

“By investing in these energy projects, we are creating local jobs and supporting our workforce, while providing the reliable power that businesses and families depend on,” he said. “This commitment to a diverse energy portfolio strengthens our economy and helps secure a brighter future for all Texans.”

“Texas continues to add more reliable, dispatchable power to meet the demand of our growing state and keep our economy the envy of the nation,” said Governor Greg Abbott. “These two SWEPCO natural gas plants are a key component to meet our state’s growing power needs and will help provide Texans with the power they need for their homes and businesses. SWEPCO’s commitment to deliver reliable, affordable, and dispatchable energy will help ensure we can continue to power a bigger, better Texas for generations to come.”

New Proposed Natural Gas Projects:

• 450-MW Hallsville Natural Gas Plant: SWEPCO is initiating a transformative project at the site of the retired H.W. Pirkey Power Plant. This facility is expected to begin operations in 2027, pending regulatory approval from utility regulators in Arkansas, Louisiana, and Texas, as detailed in filings submitted on Dec. 16. The Hallsville Natural Gas Plant will feature two General Electric combustion gas turbine generators and will utilize existing water intake structures and site infrastructure to minimize project costs.
• 1,053-MW Welsh Natural Gas Conversion Project: On Dec. 17, SWEPCO also submitted filings for a fuel conversion project at the Welsh Power Plant, located northwest of Cason, Texas. Pending regulatory approval, this initiative will convert the existing coal-fired boilers of Units 1 and 3 to burn natural gas, with Unit 1 conversion anticipated in 2028 and Unit 3 in 2027.

In addition to these projects, SWEPCO has selected a short-term capacity agreement with a natural gas facility in Texas as part of a competitive bid process. The agreement will help serve as a bridge to more permanent resource additions.