Summary
American Electric Power (AEP) subsidiary Southwestern Electric Power Company (SWEPCO) is facing a legal setback regarding its Turk Plant construction. The Arkansas Court of Appeals reversed the Arkansas Public Service Commission's (APSC) approval of a Certificate of Environmental Compatibility and Public Need (CECPN) for the plant. The court ruled that the APSC should have considered the plant's need, construction, financing, and transmission line in a single docket, deviating from established practice. SWEPCO strongly disagrees with this decision and has appealed to the Arkansas Supreme Court. Despite the ongoing legal challenge, construction of the Turk Plant is intended to continue. As of May 31, 2009, approximately $731 million had been invested in the project, with SWEPCO accounting for $555 million of that amount.
Key Highlights
- 1Arkansas Court of Appeals reversed the APSC's approval of a Certificate of Environmental Compatibility and Public Need (CECPN) for the Turk Plant.
- 2The court cited procedural grounds, stating the APSC improperly separated consideration of the plant's need, construction, financing, and transmission lines.
- 3SWEPCO disagrees with the court's ruling and believes the APSC followed correct statutory and past practices.
- 4SWEPCO has appealed the decision to the Arkansas Supreme Court.
- 5Construction of the Turk Plant is intended to continue during the appeal process.
- 6As of May 31, 2009, approximately $731 million had been spent on the Turk Plant, with SWEPCO contributing $555 million.