AEP EPA Compliance Plan Contemplates New Ohio Generation Contingent on Ohio Regulatory Treatment

AEP announced a plan to comply with a series of regulations proposed by the U.S. Environmental Protection Agency which includes the retirement of nearly 6,000 megawatts of coal-fueled power generation, including some in Ohio, and the refueling of an Ohio facility, "depending on regulatory treatment in Ohio."

Among other things, consideration would presumably include the ability of AEP Ohio to include new capacity as a nonbypassable charge, as permitted for certain facilities under statute.

Additionally, AEP said that it would retire and/or retrofit various Ohio capacity, and nonbypassable treatment could be sought for charges related to retirement and retrofit.

Specifically, AEP said that its current compliance plan for the proposed rules contemplates the retirement of the Picway Plant in Lockbourne, Ohio (100 MW) by December 31, 2014.

Additionally, AEP contemplates that it would retire Unit 3 (165 MW) at its Conesville Plant in Conesville, Ohio by December 31, 2012, while continuing operation of Units 5 and 6 (800 MW total) under retrofits.

AEP contemplates that it would retire Units 1-4 (840 MW) at it Muskingum River Plant in Beverly, Ohio by December 31, 2014, while Muskingum River Unit 5 (600 MW) may be refueled with natural gas with a capacity of 510 MW by December 31, 2014, depending on regulatory treatment in Ohio.

AEP said that it will complete construction of the Dresden Plant (580 MW natural gas) in Dresden, Ohio in 2012.