AEP Announces Plan for EPA Compliance; Plant Closures Possible
The plan could cost from $6 billion to $8 billion.
The State Journal
9 June 2011
By Pam Kasey
American Electric Power would retire about 6,000 megawatts of
coal-fired generation and refuel another 1,000 with natural gas by 2014
if proposed environmental regulations go through as planned, the
company announced June 9.
The retirements would come as part of a larger plan for compliance with
several coming U.S. Environmental Protection Agency regulations,
according to a news release, and would cost between $6 billion and $8
billion.
The approximately 7,000 megawatts of coal generation retired or
switched to gas represents nearly 30 percent of the company’s
coal-fired capacity.
“We’ve been advocating for Congress to take a look at this and to
develop a more reasonable timeline for achieving these environmental
improvements,” said AEP spokeswoman Melissa McHenry.
The proposed EPA rules driving the compliance plan include the Clean
Air Transport Rule, the Hazardous Air Pollutants rule, a rule
regulating the disposal of coal ash and another about water intake.
AEP announced last fall that it would have to retire 5,000 megawatts of
coal-fired generation in response to the proposed regulations; McHenry
said this larger number follows from a more detailed analysis of the
EPA rules.
AEP Chairman and CEO Michael G. Morris said the timelines in the EPA
proposals are unrealistic and will lead to premature plant shut downs
that cost jobs and raise electric rates.
AEP expects a net loss of about 600 power plant jobs, the news release
states.
According to the compliance plan, retirements would shut down
individual coal-fired generation units and in some cases entire power
plants Virginia, West Virginia, Ohio, Indiana, Kentucky and Texas.
In West Virginia, AEP would permanently close the Kammer power plant in
Moundsville, Kanawha River in Glasgow and Philip Sporn in New Haven.
About 240 employees would be affected, McHenry said, adding the company
would attempt to place them in other positions elsewhere.
In addition, the company would upgrade or install emissions reduction
equipment on about 10,000 megawatts of coal-fueled power generation,
would refuel about 1,000 megawatts of coal-fueled generation with
natural gas and would build about 1,200 megawatts of natural gas-fueled
generation.
AEP estimates the rate effect on West Virginia at 10 percent to 15
percent, McHenry said.
If the proposed EPA regulations are changed before they are finalized,
AEP would adjust its compliance plan accordingly.