10-16-2013 06:50 PM

AEP takes coal ‘out of the picture’ as it plans for future


AEP is phasing out its coal-fired power plants in the face of tougher rules on emissions.




American Electric Power Company Inc. CEO Nick Akins shared his vision for where the Columbus-based utility is headed Wednesday, and his priority list didn’t include coal, AEP’s traditional go-to fuel source for its power plants.
“We see the future for us being natural gas, energy efficiency, smart-grid activities and renewables,” he said during a Columbus Metropolitan Club program.
Akins didn’t seem happy about leaving coal off the list, but he said it is being “taken out of the picture” as a fuel for power plants because of federal air quality regulations, especially proposed rules on carbon dioxide emissions.
As a result, AEP (NYSE:AEP) will retire older coal-fired plants by 2015 that account for 25 percent of its electric generation capacity, he said. As I’ve reported, that includes the massive Muskingum River Plant near Beverly in southeast Ohio.
“That’s a significant challenge,” Akins said of the plant retirements, “but it’s something we’re focused on so we can replace if with other forms of energy.”
That includes 5,000 megawatts of generation from natural gas facilities AEP will build, as well as the 2,300 megawatts of power its gets from wind farms. Some of that natural gas will come from the Utica shale play in eastern Ohio, with Akins saying that play gives Ohio an opportunity to become a “true energy-producing state.”
Among the other issues Akins touched on:
How the political strife in Washington is hurting the economy and the need for Congress and the White House to develop consistent regulations and legislative policy so businesses know where they stand.

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Jeff Bell covers the energy industry for Columbus Business First.


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