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American Electric Power Co. (AEP) is reviewing options to shut down more than 5000 MW of coal power, but how soon they close will depend on regulations, a company executive has said.
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Federal and state regulations could add significant costs to the emissions costs of operating coal-fired plants.
"How much of the capacity you replace depends on the economy and depends on what the options are, such as the price of building cleaner natural-gas generation,” said AEP's executive vice president of generation Nick Akins.
AEP generates 5000 MW from smaller, older and less-efficient coal units and there is no economic justification to retrofit them with environmental upgrades. AEP is evaluating whether to retire and replace an additional 10 000 MW of power generation.
"If we retire too much capacity too quickly, we will not be able to survive from a system dynamic" added Akins.
AEP has been actively lobbying in Washington on an energy policy and regulatory concerns, such as the pace of implementing clean air rules.
AEP is also considering adding natural gas generating capacity for various brownfield projects, but is not planning to make any new coal or nuclear investments in the near term, Akin said.
The company continues to review renewable options and improve its grid efficiency. It has four smart grid pilot projects in Texas, Oklahoma, Ohio and Indiana.