AEP Ohio, a unit of American Electric Power (AEP), will buy solar energy from the 49.9 megawatt (MW) solar generating facility to be developed by Turning Point Solar, a joint venture of Agile Energy Inc. and New Harvest Power, in Southeastern Ohio.
 
AEP Ohio will buy all of the output, including renewable energy credits, over a period of twenty years from the newly developed solar generating facility.
 
According to the Ohio Substitute Senate Bill 221, AEP Ohio needs to supply 0.06% of its power generated from solar sources, 0.09% in 2013, and 0.12% in 2014. The benchmark ramps up annually to a total of 0.5% by 2024 end. AEP Ohio met the standard set for 2010 and 2011 by signing a long-term purchase power agreement for solar energy from the 10.08MW Wyandot Solar facility located in Upper Sandusky, Ohio.
 
Turning Point will develop the solar generating facility in phases over three years. Almost 20MW will be commissioned by late 2012, with another 15MW expected by the end of 2013 and the remaining 14.9MW by 2014 end.
 
The development project will also create 600 permanent and construction jobs in Ohio, with 300 permanent positions created at the facilities and 300 for construction of the project.
 
Turning Point plans to discuss with Prius and Isofoton, solar equipment manufacturers from Spain, for the supply of solar modules and solar trackers for the project.
 
During the second quarter conference call, the company guided full year 2010 earnings to the range of $2.80 and $3.20 per share.
 
The Zacks Consensus Estimates for third-quarter 2010 and fourth-quarter 2010 are a $1.02 per share and 52 cents per share, respectively. For full years 2010 and 2011, the Zacks Consensus Estimates are respectively, $3.04 per share and $3.19 per share.
 
We maintain our “Neutral” recommendation on American Electric Power. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the shares over the near term.
 
Based in Columbus, Ohio, American Electric Power is a public utility holding company, which, directly and through indirectly owned subsidiaries, generates, transmits, and distributes electricity, natural gas and other commodities.

 
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