AEP will retire 585 MW coal-fired unit in Ohio

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American Electric Power (AEP) expects to retire the 585 MW coal-fired Muskingum River Plant Unit 5 in Beverly, Ohio by 2015. The company agreed in February 2013 to modify its 2007 New Source Review Consent Decree and had the option of either retiring the unit or retrofitting it to run on natural gas.

In response to current market conditions and the costs of regulatory compliance, AEP decided not to refuel the unit and instead opt for retirement.

It will cost the utility company as much as $170 million to retire the unit, according to a release by AEP. About 95 workers at the plant will be able to apply for jobs at other AEP facilities or will receive a severance.

The company previously announced its intent to retire Muskingum River Units 1-4 (840 MW) in 2015.

The addition of Muskingum River Unit 5 brings AEP Ohio’s total retirements to 3,123 MW. The remaining 10,725 MW of AEP Ohio-owned generation – including 2,427 MW slated to be transferred to Appalachian Power and Kentucky Power following state regulatory approvals — will consist mostly of low-emitting, fully controlled coal-fueled plants, natural gas-fueled combined cycle and combustion turbines and a small hydro plant, according to the company.

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