AEP to shut 5 coal-fired plants, citing EPA rules, which will have major impact in several regions

First it was the Tennessee Valley Authority, announcing that it would close 18 old, coal-fired power plants as part of a settlement with the Environmental Protection Agency. Now Amercian Electric Power Co. has announced it will shut five coal-fired plants and convert others to natural gas, to meet new EPA regulations. "Those changes would be driven by proposed rules requiring coal-fired power plants to cut their air pollution, handle chemical-laden coal ash differently and upgrade their cooling water systems to avoid killing fish," Gabriel Nelson of Environment & Energy News reports (subscription required). Three of the plants are in West Virginia, one in Virginia and one in Ohio.

A study by NERA Economic Consulting for the American Coalition for Clean Coal Electrcity predicts the impact of the new rules by electric region:

"The cumulative impacts of the EPA's current regulatory path have been vastly underestimated, particularly in Midwest states dependent on coal to fuel their economies," AEP chairman and CEO Michael Morris said in a news release. "Because of the unrealistic compliance timelines in the EPA proposals, we will have to prematurely shut down nearly 25 percent of our current coal-fueled generating capacity, cut hundreds of good power-plant jobs, and invest billions of dollars in capital to retire, retrofit and replace coal-fueled power plants. The sudden increase in electricity rates and impacts on state economies will be significant at a time when people and states are still struggling." (Read more)