The D.C. Circuit Court also set aside the U.S. EPA's Clean Air Mercury Rule (CAMR), a rule developed in concert with CAIR
to reduce multiple pollutants. CAMR
required coal-fired power plants to cap and reduce mercury emissions. The legal appeals of the D.C. Circuit Court
decisions have to run their course, and
the EPA intends to develop a mercury regulatory program to replace CAMR.
The electric industry faces a challenge because the technology to control mercury emissions is relatively new and untested. Despite the reduction in our capital budget, we are continuing with the installation of an activated carbon injection mercury control system at our Rockport Plant in Indiana (2,600 MW), in part to gain experience with the technology. Installation of the technology on
the Pirkey Plant in Texas, AEP’s highest mercury emitter, was postponed because of the budget reduction. We will reevaluate this decision periodically so that if cash flow increases, the project can
move forward. In the meantime, we are installing continuous mercury monitoring
equipment at more than 20 coal-fired power plants, including Pirkey.