Kentucky Power to invest nearly $1bn on retrofitting coal-fired power plant

Kentucky Power Co, an operating unit of American Electric Power (NYSE: AEP), has announced plans to invest approximately $940 million in its 800 MW Big Sandy Power Plant near Louisa, Ky., to meet regulations from the U.S. Environmental Protection Agency.

The investment is needed to construct a dry scrubber system on the plant. The plant’s other generating unit, which is 278 MW, is slated to retire at the end of 2014.

Kentucky Power has submitted its retrofit plans to Kentucky Public Service Commission, which must approve the project and investment. If approved, the retrofit would be completed sometime in 2016. The company estimates that as many as 700 jobs will be created during the construction period.

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