AEP cuts capex; 1,100 MW of new capacity safe

31 March 2009 — American Electric Power will continue to build the John W. Turk Jr. Power Plant, a 600 MW coal-fired power plant in Arkansas scheduled for completion in 2012. That news comes as the company said it plans to cut its 2010 capital spending budget to $1.8 billion from the previous planned $3.4 billion.

The company said the revenue impact of the economic downturn led to its decision to cut the 2010 capital budget. The capital spending cuts are spread across AEP’s utility operating companies in generation, transmission and distribution. Discretionary projects are being deferred until the economic climate warrants the additional investment, the company said.

Work will also continue on the J. Lamar Stall Unit, a 500 MW natural-gas fueled plant in Louisiana scheduled for completion in 2010; and the carbon capture and storage project scheduled for completion in September at the Mountaineer Plant in West Virginia. AEP said it will continue pursuing necessary approvals for extra-high voltage transmission projects under development.

The 2009 capital budget, which was reduced in October to $2.6 billion from more than $3.3 billion, remains unchanged. The company said it intends to keep operations and maintenance spending for 2009 and 2010 unchanged from the 2008 level of $3.4 billion.

Stories of interest:

AEP awards contract for 600 MW Turk Station

Arkansas regulators approve $1.3B coal plant