AEP-PSO has gained unanimous approval from state regulators for three long-term wind power contracts that could reduce costs for customers by $53 million in the first year alone, the Tulsa-based utility announced Tuesday.

The Oklahoma Corporation Commission approved the utility's cost recovery plan for the 20-year contracts, which involve wind farms in western Oklahoma.

The contracts, signed in October, will provide American Electric Power-Public Service Co. of Oklahoma with nearly 600 megawatts of power — enough for more than 120,000 homes — to be generated from wind farms near Seiling, Balko and Goodwell starting Jan. 1, 2016.

Customers will pay for the wind power through the utility's fuel-cost adjustment. Thanks to favorable contracts and tax credits for wind power, the deal should save millions of dollars each year compared with coal or natural gas-fired power generation, AEP-PSO spokesman Stan Whiteford said.