In August 2004, AEP announced its intentions to construct an Integrated Gasification Combined Cycle (IGCC) power plant and place it in commercial operation by 2010. However, the prospects for our two proposed IGCC project in Ohio and West Virginia are uncertain. Without full support from regulators and legislators in Ohio, West Virginia and Virginia (the West Virginia plant also would serve customers in Virginia), we cannot make the massive investments needed to build this technology, especially when cash flow is tight and access to credit is difficult and expensive. We continue to talk with our regulators and legislators about these options because we believe this technology is critical.
IGCC is a clean coal technology
IGCC is a clean coal technology that turns coal into
a gas, and then removes impurities from the coal gas before it is combusted. This
results in lower emissions of sulfur dioxide, particulates and mercury. It also
results in improved efficiency compared to conventional pulverized coal. Because
coal is America's most abundant energy source, the environmental
benefits of this technology are strategically important to AEP, as well
as the nation.
IGCC technology, along with the environmental improvements AEP is making on its existing
coal-fired fleet, can keep AEP as a low-cost, low-emissions electricity supplier
in the future.
AEP will build one or more IGCC units, providing that
costs can be recovered through the regulatory process.
