Indiana Michigan Power (I&M), an unit of American Electric Power (AEP), will add 200MW of wind power under a 20-year power purchase agreement with EDP Renewables North America.
The Headwaters wind farm in Randolph County in Indiana will be connected to the AEP transmission system to deliver power to I&M customers in Michigan and Indiana.
Construction of the wind farm is expected to start later this year and be completed by the end of 2014.
The Headwaters wind farm will increase I&M's total wind power portfolio to 450MW.
I&M president and COO Paul Chodak III said: "Our agreement with EDPR is an important step in our continuing efforts to diversify our generation portfolio, which includes wind, hydro, nuclear and coal."
The wind power contract resulted from a request for proposals that I&M issued in February to fulfil its commitment under a consent order negotiated with the US Environmental Protection Agency, several northeastern states, and various environmental groups to add 200MW of new wind energy.
I&M currently has power purchase agreements for a total of 150MW from the Fowler Ridge wind farm in Benton County in Indiana and 100MW from the Wildcat-1 wind farm in Madison, Grant, Howard and Tipton counties in Indiana.
EDPR owns and operates 29 wind farms throughout the US, including the Meadow Lake Wind Farm in White County, Indiana.
Image: Headwaters wind farm will increase I&M's total wind power portfolio to 450MW. Photo: Courtesy of FreeDigitalPhotos.net.