Dive Summary:
- On Tuesday, American Electric Power (AEP) and its subsidiary Indiana Michigan Power announced plans to retire their 500-megawatt, coal-fired (MW) Tanners Creek unit 4 in Lawrenceburg, Indiana.
- AEP already announced it would retire Tanners Creek units 1-3 in 2011. All units at the facility will be retired by mid-2015.
- Flat electricity demand growth, no need for additional generation and the cost of complying with environmental regulation made the plant economically unfeasible for AEP.
- “[W]e’ve determined that the cost of refueling Tanners Creek 4 is not the right capital investment,” Nick Akins, AEP president and CEO, said.
From the article:
"The retirement of Tanners Creek 4 does not impact AEP’s 2013 operating earnings guidance range of $3.05 to $3.25 per share, and the company still expects to deliver an earnings growth rate of 4 to 6 percent off of 2013 operating earnings guidance. Indiana Michigan Power currently recovers Tanners Creek Plant costs in its rates and plans to seek appropriate regulatory approvals to recover its costs going forward."
