New generation
Rising demand for electricity reflects today’s technological advances, economic progress, and population growth. To meet this burgeoning demand, AEP is planning for the future and already has several new power generation projects underway.

On Aug. 31, 2004, AEP announced its intent to build approximately 1,200-megawatts of commercial-scale, baseload integrated gasification combined cycle (IGCC) generation. An IGCC power plant efficiently reduces and removes sulfur dioxide, nitrogen oxides, particulates and mercury from plant emissions. IGCC plants also offer the opportunity for more efficient, less costly carbon capture for disposal in deep geologic formations. This announcement represented the first statement of intent for a company to construct a commercial-scale, baseload-operated IGCC power plant in the country.

The company’s AEP Ohio operating unit filed for cost recovery March 18, 2005, with the Public Utilities Commission of Ohio to build an IGCC plant in Meigs County, Ohio. In April 2006, the commission issued an order that allows AEP Ohio to recover pre-construction costs, including the front-end engineering and design (FEED) study, for the Integrated Gasification Combined Cycle (IGCC) clean-coal plant from its Ohio customers. AEP’s Appalachian Power operating company similarly filed an application on January 11, 2006 with the Public Service Commission of West Virginia for authority to construct an IGCC power plant. AEP is moving forward with the engineering design process for the IGCC technology in order to remain on schedule to complete its first IGCC plant by 2010.

Additionally, AEP is seeking new generation capacity for portions of its western service territory PSO and SWEPCO both require 600 MW of solid fuel capacity by June 1, 2011. PSO also will secure 320 MW of natural gas peakers by June 1, 2008. SWEPCO will obtain 480 MW of peaking capacity by June 1, 2008 and 500 MW of natural gas combined cycle by June 1, 2010.