Coal

SWEPCO announces plans for new generation

31 May 2006 — American Electric Power’s Southwestern Electric Power Company (SWEPCO) today announced plans for short-term, mid-term and long-term generation to meet the electricity demands of the company’s customers.

AEP has included approximately $1.4 billion for new SWEPCO generation in its previously disclosed capital projections.

To meet SWEPCO’s more immediate power requirements for 2007 to 2009, the company will build up to 480-MW of simple-cycle natural-gas combustion turbine (CT) peaking generation in Tontitown, near Fayetteville, Ark., and will sign firm power purchase contracts with third-party suppliers for up to 450 MW. No external bids for long-term peaking power were submitted. Power suppliers will be named when contracts are finalized.

To meet additional electricity demand growth through 2010 and beyond, SWEPCO proposes to build a 480-MW, combined-cycle natural gas-fired plant at its existing Arsenal Hill Power Plant in Shreveport, La.

SWEPCO proposes to build a new base load coal- or lignite-fueled plant by 2011 to meet the longer-term generation needs of its customers.

Two potential sites are being considered for the new coal- or lignite-fueled plant: the company’s Henry W. Pirkey Power Plant in Hallsville, Texas, and a site near Fulton in Hempstead County, Ark., near Texarkana.

An announcement about the selected location is expected later this summer. This site selection will ultimately require the approval of the Arkansas, Louisiana and Texas public utility commissions.

Combustion technology for the plant also has not been finalized, however SWEPCO is considering Integrated Gasification Combined Cycle (IGCC) and ultra-super critical pulverized coal.