AEP “disappointed” by IGCC setback

20 March 2008


AEP’s ambitions to construct an integrated gasification combined cycle (IGCC) power plant in Ohio have been put on hold following a ruling by the state’s Supreme Court preventing the utility from charging its customers more to help fund the project.

Ohio-based AEP was planning to build a 629 MW IGCC plant in Meigs County, Ohio as part of plans to build 1200 MW of IGCC capacity. It recently received an environmental permit for a proposed IGCC plant in West Virginia.

AEP said it was “disappointed” by the court’s decision and that it would have to wait for clarity about the future of electricity generation in Ohio before going ahead with construction of the plant in Ohio.

The Ohio Supreme Court reversed a Public Utilities Commission decision that allowed AEP to charge its customers an estimated $23.7 million to fund preliminary research for the proposed construction of the plant. It has referred the matter back to the PUC to allow it to justify its decision.

“We are committed to IGCC generation technology and will continue to pursue it in jurisdictions where there are conducive investment climates,” said AEP president Robert Powers. “We hope that the State of Ohio can resolve the path to move forward with new baseload generation, thereby bringing this technology and the associated jobs to Ohio.”

In West Virginia, AEP was recently granted a Certificate of Public Convenience and Necessity for a 629 MW IGCC plant at the site of its existing Mountaineer power plant. It has also filed for an environmental permit from West Virginia Department of Environmental Protection, and is expecting a decision in April.

AEP announced in 2004 its ambitions to build 1200 MW of IGCC, a technology it believes allows for more efficient and effective reduction of pollutants compared to conventional coal technologies.




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