Coal

AEP files for permits for clean-coal power plants in Ohio, West Virginia

3 October 2006 — American Electric Power filed state environmental permit applications yesterday for clean-coal power plants in Ohio and West Virginia. AEP said it will continue preparing for construction while it awaits the permits.

Separate applications were filed with the Ohio Environmental Protection Agency and the West Virginia Department of Environmental Protection for Integrated Gasification Combined Cycle (IGCC) plants the company plans to build in Meigs County, Ohio, and Mason County, W.Va.

“We have teams working on our IGCC projects each day while we continue to pursue the necessary regulatory cost-recovery approvals from the utility commissions in each state,” said Michael G. Morris, AEP’s chairman, president and chief executive officer. “

Morris said site-specific engineering and design work is ongoing and will be completed later this year.

“It remains our intent to begin construction on the Ohio plant first, with work in West Virginia beginning about two years later, although our start dates will be determined by the completion of the regulatory approval processes in the states,” Morris said. “Once we receive final cost-recovery authority and legal challenges � if any � have been resolved, we will begin construction.”

AEP has proposed IGCC technology for use as new base-load generation in the seven-state eastern portion of its service territory and has also announced plans to build two ultra-supercritical pulverized coal power plants in its western operating area.

On Aug. 31, 2004, AEP announced its intent to scale-up IGCC technology and build approximately 1,200 MW of large, commercial scale IGCC generation.

The company’s AEP Ohio subsidiary filed March 18, 2005, with the Public Utilities Commission of Ohio (PUCO) for cost recovery for a 629-MW IGCC plant in Meigs County. On April 10, 2006, the PUCO issued an order allowing AEP Ohio to recover pre-construction costs, including the front-end engineering and design (FEED) study currently under way. During the FEED process, technology supplier GE and engineering, procurement and construction company Bechtel will determine definitive costs for the project. AEP will then provide the PUCO with definitive cost information and seek approval to recover the costs of building and operating the plant.

The company’s Appalachian Power subsidiary filed an application Jan. 12, 2006, with the Public Service Commission of West Virginia seeking authority to build a 629-MW IGCC plant adjacent to AEP’s Mountaineer Plant near New Haven in Mason County.