Summary
American Electric Power (AEP) and its subsidiaries have reached a settlement agreement with the U.S. Environmental Protection Agency (EPA), the U.S. Department of Justice, several states, and environmental groups concerning alleged violations of the Clean Air Act's New Source Review requirements at certain coal-fired power plants. This settlement aims to resolve all claims related to these allegations, bringing closure to ongoing litigation. The agreement mandates significant investments in environmental controls, including the installation of advanced emission reduction technologies like scrubbers (FGD) and selective catalytic reduction (SCR) systems at various AEP plants over the next several years. Additionally, AEP will implement annual emission limits for sulfur dioxide (SO2) and nitrogen oxide (NOX) for sixteen of its coal-fired facilities. As part of the settlement, AEP will also pay a $15 million civil penalty and contribute $36 million towards environmental projects and $24 million for mitigation efforts to the states. The settlement is subject to court approval.
Key Highlights
- 1AEP and its subsidiaries have settled with the EPA and other parties regarding Clean Air Act New Source Review allegations.
- 2The settlement requires AEP to install significant environmental retrofit projects, including FGD (scrubbers) and SCR systems, at multiple coal-fired power plants.
- 3Specific installation deadlines are set for emission control equipment, with some extending to 2019.
- 4Annual emission limits for SO2 and NOX will be imposed on sixteen AEP coal-fired power plants.
- 5AEP will pay a $15 million civil penalty to the U.S. Department of Justice.
- 6AEP will contribute $36 million for environmental projects and $24 million to states for environmental mitigation.
- 7The settlement is subject to final approval by the U.S. District Court for the Southern District of Ohio.