AEP CEO: Coal being “taken out of picture” for company

Indiana Michigan Power, an operating unit of American Electric Power (NYSE: AEP), has announced it will retire the 500 MW Tanners Creek 4 generating unit along with the other three units at the plant. All four generating units at the plant…

Indiana Michigan Power, an operating unit of American Electric Power (NYSE: AEP), has announced it will retire the 500 MW Tanners Creek 4 generating unit along with the other three units at the plant. All four generating units at the plant will be retired by mid-2015.

AEP had announced in June 2011 that Tanners Creek units 1 through 3 would be retired by mid-2015, but an agreement reached in February 2013 allowed AEP to either retire or refuel Unit 4. The company determined projections for limited electricity demand growth combined with the amount of generation currently available for Indiana Michigan customers made it financially unfeasible to refuel the unit.
Around 115 employees at Tanners Creek will be impacted by the closure. AEP stated it will work to find job opportunities for the employees at other AEP facilities, and employees who do not find other positions with the company will be considered for severance benefits.
The announcement of the retirement of Unit 4 brings the total of coal-fueled generation that will be retired by AEP to 7,176 MW by early 2016.