Obama and Kemper CO2 Coal Plant

Not Heeding the Warnings From Other Energy Companies

Why is Mississippi ignoring the warnings from other energy companies?  Others have determined that CCS fails to make economic sense at this point in time.  Is this the deal Haley Barbour made to gain  support for his now scrapped presidential run?  The residents of Mississippi will pay for this error forever because they have now paved the way for Cap and Trade to embark. There is no going back because there is
NO RISK TO MISSISSIPPI POWER COMPANY BECAUSE WE ARE PAYING FOR IT, NOT THEM!!!
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AEP Places Carbon Capture Commercialization On Hold, Citing Uncertain Status Of Climate Policy, Weak Economy

COLUMBUS, Ohio, July 14, 2011 – American Electric Power (NYSE: AEP) is terminating its cooperative agreement with the U.S. Department of Energy and placing its plans to advance carbon dioxide capture and storage (CCS) technology to commercial scale on hold, citing the current uncertain status of U.S. climate policy and the continued weak economy as contributors to the decision.

“We are placing the project on hold until economic and policy conditions create a viable path forward,” said Michael G. Morris, AEP chairman and chief executive officer. “With the help of Alstom, the Department of Energy and other partners, we have advanced CCS technology more than any other power generator with our successful two-year project to validate the technology. But at this time it doesn’t make economic sense to continue work on the commercial-scale CCS project beyond the current engineering phase.

“We are clearly in a classic ‘which comes first?’ situation,” Morris said. “The commercialization of this technology is vital if owners of coal-fueled generation are to comply with potential future climate regulations without prematurely retiring efficient, cost-effective generating capacity. But as a regulated utility, it is impossible to gain regulatory approval to recover our share of the costs for validating and deploying the technology without federal requirements to reduce greenhouse gas emissions already in place. The uncertainty also makes it difficult to attract partners to help fund the industry’s share.”

In 2009, AEP was selected by the Department of Energy (DOE) to receive funding of up to $334 million through the Clean Coal Power Initiative to pay part of the costs for installation of a commercial-scale CCS system at AEP’s Mountaineer coal-fueled power plant in New Haven, W.Va. The system would capture at least 90 percent of the carbon dioxide (CO2) from 235 megawatts of the plant’s 1,300 megawatts of capacity. The captured CO2, approximately 1.5 million metric tons per year, would be treated and compressed, then injected into suitable geologic formations for permanent storage approximately 1.5 miles below the surface.

Plans were for the project to be completed in four phases, with the system to begin commercial operation in 2015. AEP has informed the DOE that it will complete the first phase of the project (front-end engineering and design, development of an environmental impact statement and development of a detailed Phase II and Phase III schedule) but will not move to the second phase.

DOE’s share of the cost for completion of the first phase is expected to be approximately $16 million, half the expenses that qualify under the DOE agreement.

AEP and partner Alstom began operating a smaller-scale validation of the technology in October 2009 at the Mountaineer Plant, the first fully-integrated capture and storage facility in the world. That system captured up to 90 percent of the CO2 from a slipstream of flue gas equivalent to 20 megawatts of generating capacity and injected it into suitable geologic formations for permanent storage approximately 1.5 miles below the surface. The validation project, which received no federal funds, was closed as planned in May after meeting project goals. Between October 2009 and May 2011, the life of the validation project, the CCS system operated more than 6,500 hours, captured more than 50,000 metric tons of CO2 and permanently stored more than 37,000 metric tons of CO2.

“The lessons we learned from the validation project were incorporated into the Phase I engineering for the commercial-scale project,” Morris said.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.

This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: the economic climate and growth in, or contraction within, AEP’s service territory and changes in market demand and demographic patterns; inflationary or deflationary interest rate trends; volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impairing AEP’s ability to finance new capital projects and refinance existing debt at attractive rates; the availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material; electric load and customer growth; weather conditions, including storms, and AEP’s ability to recover significant storm restoration costs through applicable rate mechanisms; available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters; availability of necessary generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover Indiana Michigan Power’s Donald C. Cook Nuclear Plant Unit 1 restoration costs through warranty, insurance and the regulatory process; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity, including the Turk Plant, and transmission line facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs (including the costs of projects that are cancelled) through applicable rate cases or competitive rates; new legislation, litigation and government regulation, including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances or additional regulation of fly ash and similar combustion products that could impact the continued operation and cost recovery of AEP’s plants; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance); resolution of litigation (including AEP’s dispute with Bank of America); AEP’s ability to constrain operation and maintenance costs; AEP’s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities; changes in the creditworthiness of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas, coal, nuclear fuel and other energy-related commodities; changes in utility regulation, including the implementation of electric security plans and related regulation in Ohio and the allocation of costs within regional transmission organizations, including PJM and SPP; accounting pronouncements periodically issued by accounting standard-setting bodies; the impact of volatility in the capital markets on the value of the investments held by AEP’s pension, other postretirement benefit plans and nuclear decommissioning trust and the impact on future funding requirements; prices and demand for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.

http://www.aep.com/newsroom/newsreleases/?id=1704

Brandon Presley: Consumers lost in Mississippi Power’s planned Kemper County plant | Better MS Report

Brandon Presley: Consumers lost in Mississippi Power’s planned Kemper County plant | Better MS Report.

From Better Mississippi Report:

JACKSON (Tuesday, July 6, 2010) – Public Service Commissioner Brandon Presley says consumers lost in Mississippi Power Co.’s planned Kemper County coal plant because the utility doesn’t have to guarantee the technology behind the project will ever work.

Mississippi Power’s plant, the first of its kind in the world, will use a new technology that converts a soft coal called lignite into a gas to fuel turbines and create electricity. The concept is high risk because no one can guarantee that the technology to be used in the plant will work.

Presley said Gov. Haley Barbour and U.S. Energy Secretary Steven Chu sent letters asking for support of the Mississippi Power plant. But Presley voted in April and May against forcing Mississippi Power ratepayers to finance the plant.

“I received letters urging me to support the project from everyone from Gov. Barbour to Steven Chu, secretary of energy in the Obama administration,” said Presley, who represents the Northern District on the three-member PSC.

“If they thought it was such a good project, why didn’t they find a way to pay for it rather than forcing Mississippi Power’s customers to be the sole investors in the plant?” Presley told the Better Mississippi Report.

The PSC voted 2-1 in April to allow Mississippi Power Co. to build the Kemper County plant at a cost of no more than $2.4 billion. Commissioners said they would decide at a later date whether to grant Mississippi Power’s request for ratepayers to finance the plant before it begins operating.

Less than a month later in May, the PSC voted 2-1 to increase the cost cap of the Mississippi Power plant to $2.88 billion and also allowed the company to charge ratepayers for financing costs before the plant is completed.

Presley cast the sole no votes at the April and May meetings.

Presley, 32, a lifelong resident of Nettleton, is in his first term on the PSC – winning the position in 2007 after serving as mayor of Nettleton from 2001 to 2007. He talked about the Mississippi Power plant and other issues in an interview with the Better Mississippi Report.

Better Mississippi Group: You were the only member of the Mississippi Public Service Commission to oppose the Mississippi Power Co. plan to build a coal-burning plant in Kemper County. Can you explain your concerns about this proposal and why you voted against it?
Brandon Presley:
Very simple. Mississippi Power wanted the ratepayers to pay in advance hundreds of millions of dollars in financing costs and then $2.4 billion (now up to $2.88 billion) for the plant itself, and after hours and hours of sworn testimony and days of hearings they would not, and to this day, still will not, guarantee their new technology to be used in this plant will work.
If I had voted yes for this plant, I would have been a part of forcing ratepayers in one of the poorest states in the nation to pay, in advance, for something the company can’t even guarantee will work and that was, obviously, a big concern to me. I strongly support innovative technology, and I have a deep admiration for the scientists and engineers who bring about groundbreaking ideas that could make our lives better. But I believe the companies themselves and private sector investors should be willing to take some of the risks and not force all the risk on ratepayers who don’t have a choice in their providers. Remember, customers of Mississippi Power can’t choose who provides their electricity. They must use Mississippi Power or be in the dark, literally. So they are now being forced, via their electric bill, to invest in this plant.
I received letters urging me to support the project from everyone from Gov. Barbour to Steven Chu, secretary of energy in the Obama administration. I wondered if they thought it was such a good project, why didn’t they find a way to pay for it rather than forcing Mississippi Power’s customers to be the sole investors in the plant?
Also, I felt strongly that since there are so many unknowns out there, especially about the technology itself, that nothing would have been harmed by waiting. As I have said, Henry Ford built a better car five years after he started on his first one.
In a few years, we should have a better idea about other discoveries going on now, such as the impact of shale natural gas and also about the technology in the plant. Maybe then Mississippi Power will be able to guarantee that it will work. In a few years, we should also have a better understanding of the current energy legislation and environmental regulation that is being debated in Washington.
If Mississippi Power is going to ask consumers to pay up to $2.88 billion, plus hundreds of millions in banking fees (before the plant puts out any electricity), they need to have their ducks in a row with technology that they can guarantee works and share some of the risk. They didn’t. So I voted “no” twice.

Better Mississippi: The vote was a total change from a stand the PSC took days earlier. Can you tell us what led to the about-face on the PSC?
Presley:
I’ve been consistent – I voted no both times. You would have to ask the other two commissioners that question. Even though I could not support the project after hearing and studying the facts presented to us for months, I felt the first order on April 29th was strong and at least had some good protections in it for the ratepayers. I do not know why the majority voted to ease up on that order and grant the company another $480 million in spending authority under certain circumstances.

Better Mississippi: Mississippi Power Co. won’t release the possible increase in electric rates that customers may have to pay to finance construction of the Kemper County plant. Is this something that should be released to the public? Why?
Presley:
Absolutely. They should have been disclosed before the plant was approved. It was one of the reasons I voted against the project. Two times before the final votes, I asked if the rate impacts were going to be made public before the project was approved, and both times the answer was “no.”
The customers of Mississippi Power have a right to know how this plant is going to impact their bills. They shouldn’t have to wait until they get the bill out of their mailbox to understand how much it is going to cost them. I had proposed changing the rule that allowed Mississippi Power to deem these rate impacts “confidential” prior to the final vote on Kemper. I raised the issue of changing this rule in May but was out-voted. The issue was taken up in our June meeting, at which time it passed unanimously.

Better Mississippi: With the Sierra Club taking the Mississippi Power Co. Kemper County issue to court, how do you see things working now? Will this be a long, protracted case?
Presley:
All I know is that I will keep fighting for taxpayers and ratepayers no matter what happens.

Better Mississippi: You are one of three commissioners on the PSC. Can you tell us about your relationship with the other commissioners? Do you all tend to get along? How do you handle disagreements on major issues, such as the one with Mississippi Power Co.?
Presley:
I like my fellow commissioners and think they’re good men. As with any three-member commission, we are going to disagree from time to time.
With that said, I tend to be very passionate about the job the people elected me to do. I’m passionate about what I believe a regulator is supposed to do. I won’t back down when I believe consumers are getting a raw deal or when I see something unfair about the process. I think that’s what the ratepayers expect and it’s certainly how an elected official who is protecting the public’s interest should act, in my opinion.
When you have the courage of your convictions, you don’t mind going against the grain or standing alone. I recently heard a pretty good saying that fits this situation, “Even a dead fish can go with the flow.” I don’t plan to be a “go with the flow” commissioner.

Better Mississippi: What do you see as the biggest challenge of the PSC these days?
Presley:
The single biggest challenge is making sure that consumers aren’t left out of the picture at the PSC. It seems that almost every rate plan, service plan, rule and regulation was written for and by the utilities for their benefit. Too many times the people who actually have to pay the utility bills have just been left out of the process and forgotten. The simple fact is that if the PSC doesn’t stand up for the consumer, nobody else is going to.
We desperately need balance at the PSC. And by that, I mean that we need to remember that there are real people, families, small businesses and industries that have to pay for these rate hikes and proposals. The utilities have a vast reservoir of attorneys, lobbyists, experts and cheerleaders. All the general public has is the PSC.

Better Mississippi: What do you see as the most important regulatory issues facing the PSC and consumers in the state?
Presley:
So many Mississippians are facing very tough economic situations in their homes and at their businesses. My mission is to do everything possible to keep money in the pockets of taxpayers and ratepayers and not help the big utilities make undeserved profits. That is our single biggest challenge. I believe we can craft policies that are pro-consumer and pro-business. Letting utilities increase rates whenever they want hurts so many small businesses that are the backbone of our state’s economy. I am proud to say that I have voted against more spending and rate increases than any other commissioner in the history of the PSC.

Better Mississippi: How do you see your role on the PSC?
Presley:
I see my role as a watchdog for the public interest – period.
A commissioner I’ve gotten to know from another state says it best. One time, when the hearing room was full of attorneys and high-paid lobbyists for the utility companies, he called the meeting to order by asking everyone who was there on behalf of the utilities to please stand up. Almost the whole room, of course, stood to their feet. Then he told them to sit down. He then asked, “Who is here on behalf of the ratepayers?” Nobody responded and he stood up and said “You see, folks? That’s why I’m here. That’s my job.” I couldn’t agree more.

Better Mississippi: Statewide and district elections will take place in 2011. Do you plan to run for re-election? Why or why not?
Presley:
I honestly haven’t given it much thought. I’m consumed daily with issues at the PSC and getting my job done. I will make a decision about the election in the coming months.

 

More on Obama’s US Secretary of Energy who Targeted PSC’s for Kemper County

Dr. Steven Chu, Secretary of Energy

As United States Secretary of Energy, Dr. Steven Chu is charged with helping implement President Obama’s ambitious agenda to invest in clean energy, reduce our dependence on foreign oil, address the global climate crisis, and create millions of new jobs.

Dr. Chu is a distinguished scientist and co-winner of the Nobel Prize for Physics (1997). He has devoted his recent scientific career to the search for new solutions to our energy challenges and stopping global climate change – a mission he continues with even greater urgency as Secretary of Energy.

Prior to his appointment, Dr. Chu was the Director of the Department of Energy’s Lawrence Berkeley National Lab, where he led the lab in pursuit of alternative and renewable energy technologies. He also taught at the University of California as a Professor of Physics and Professor of Molecular and Cell Biology. Previously, he held positions at Stanford University and AT&T Bell Laboratories.

Dr. Chu’s research in atomic physics, quantum electronics, polymer and biophysics includes tests of fundamental theories in physics, the development of methods to laser cool and trap atoms, atom interferometry, the development of the first atomic fountain, and the manipulation and study of polymers and biological systems at the single molecule level. While at Stanford, he helped start Bio-X, a multi-disciplinary initiative that brings together the physical and biological sciences with engineering and medicine.

The holder of 10 patents, Dr. Chu has published nearly 250 scientific and technical papers. He remains active with his research group and has recently published work on general relativity and single molecule biology and biophysics that includes sub-nanometer molecular imaging with optical microscopy, cadherin adhesion, neural vesicle fusion, and nerve growth factor transport. About 30 alumni of his research group have gone on to become professors in their own right and have been recognized by dozens of prizes and awards.

Dr. Chu is a member of the National Academy of Sciences, the American Philosophical Society, the Chinese Academy of Sciences, Academia Sinica, the Korean Academy of Sciences and Technology and numerous other civic and professional organizations. He received an A.B. degree in mathematics, a B.S. degree in physics from the University of Rochester, and a Ph.D. in physics from the University of California, Berkeley as well as honorary degrees from 15 universities.

Dr. Chu was born in Saint Louis, Missouri in 1948. He is married to Dr. Jean Chu, who holds a D.Phil. in Physics from Oxford and has served as chief of staff to two Stanford University presidents as well as Dean of Admissions. Secretary Chu has two grown sons, Geoffrey and Michael, by a previous marriage.

In announcing Dr. Chu’s selection, President Obama said, “The future of our economy and national security is inextricably linked to one challenge: energy. Steven has blazed new trails as a scientist, teacher, and administrator, and has recently led the Berkeley National Laboratory in pursuit of new alternative and renewable energies. He is uniquely suited to be our next Secretary of Energy as we make this pursuit a guiding purpose of the Department of Energy, as well as a national mission.” Dr. Chu was sworn into office as the 12th Secretary of Energy on January 21, 2009.

http://www.energy.gov/organization/dr_steven_chu.htm

Pressure from Obama’s Energy Czar for MS PSC and So. Company to Compromise for Cap and Trade

U.S. Energy Secretary Wants Kemper Approval

by Amy McCullough

Published: May 7,2010

The Energy Daily reports today that U.S. Energy Secretary Steven Chu hopes the Mississippi Public Service Commission and Southern Company can strike a compromise on a proposed $2.4 billion clean coal plant to be built in Kemper County.

The Mississippi Commission voted April 29 to allow the plant to go forward if Mississippi Power Company (a division of Southern Company) agreed to cap costs at $2.4 billion. MPC had previously proposed a cost cap of $3.2 billion. The Commission also turned the company down on its request to put Construction Work in Progress (CWIP) in rate base – or charge customers for plant financing costs before and during plant construction.

“The (Southern) project is also a large-scale project but it’s now in jeopardy. I just hope that Southern Co. and the (Mississippi) commission come to a compromise agreement…” Chu said, according to The Energy Daily.

Chu spoke Thursday at the Obama administration’s Interagency Task Force on Carbon Capture and Storage (CCS) – a task force charged with overcoming barriers to CCS within 10 years, with a goal of bringing five to 10 commercial demonstration projects online by 2016.

MPC has said the Commission’s restrictions “seem to make it impossible” to move forward with the plant and that the denial of CWIP would not allow them to operate in a financially responsible manner.

The Kemper plant would be the first U.S. plant to demonstrate CCS on a commercial scale. Southern Company first pursued a similar project, the Orlando Gasification Project, in Florida. After the state cancelled the project, Southern then gained permission to transfer $270 million in U.S. Department of Energy funds to Mississippi to pursue a clean coal project with CCS here.

Kemper would gasify Mississippi lignite, a lower rank coal, and then burn the gas to produce electricity. The company also plans to sell the plant’s captured carbon for Enhance Oil Recovery projects. In EOR, gas can be injected into depleted oil fields at high pressure to increase the amount of petroleum that can be extracted.

http://msbusiness.com/2010/05/us-energy-secretary-wants-kemper-approval/

Obama, Van Jones, Barbour, Bentz, & Posey

Van Jones and U.S. Energy Secretary Steven Chu are both on Obama’s payroll to lead the progressive movement for Economic Justice.  The chickens-have-come-home-to-roost right here in Kemper County Mississippi.

Prepare for your electric bill to increase up to 45% starting Jan 1, 2012. I think this delay is to assure successful reelections of the submissive PSCs.  Bentz, PSC South District, said the economy will rebound by 2012 and that is why he waited to raise rates.  Really?

The Kemper CAP AND TRADE project is slightly funded by Obama’s stimulus package for Green jobs.   When our Public Service Commissioners initially set financial limits to Mississippi Power’s estimate for construction,  Mississippi Power concluded the project could not proceed. ( I understand MSP has horrible credit and cannot get a loan.)

So at that junction, I understand, our PSC’s  could place the burden on families to fund the billions or Obama takes his cap and trade and shoves it to some other gullible state.  (Not Florida they rejected it)  That is where U.S. Energy Secretary Steven Chu, with Obama’s  magic comes in.

Please see the article on Steven Chu and his vodoo-like ability change the minds of Leonard Bents and Lynn Posey to suddenly approve the most widespread economic destructive path starting with gullible Mississippi.

AEP Drops Carbon Storage Project On Lack Of Federal Carbon Limits – WSJ.com

AEP Drops Carbon Storage Project On Lack Of Federal Carbon Limits – WSJ.com.

   By Cassandra Sweet
   Of DOW JONES NEWSWIRES

American Electric Power Co. (AEP) will stop work on a low-carbon coal-fired power plant as political support shrinks in the U.S. for regulating heat-trapping emissions linked to climate change.

The facility, which had been touted as a leading project to make the complex technology commercially viable, is the latest sign that the U.S. power industry is moving away from carbon dioxide emission-reduction technology. A lack of consensus in Washington over regulating carbon dioxide emissions, coupled with sluggish demand for power, has pressured AEP and other utilities to cut investment in so-called clean coal technology.

AEP Chairman and Chief Executive Michael G. Morris said the project to capture and store carbon emissions from an existing coal-fired plant in West Virginia doesn’t make economic sense while U.S. climate policy remains uncertain and the economy is weak.

West Virginia regulators had prohibited the company from passing on the project’s costs to utility customers until federal greenhouse-gas reduction rules are in place, further weakening the project, Morris said.

AEP designed the system to capture at least 90% of the carbon dioxide from a 235-megawatt piece of the company’s 1,300-MW Mountaineer coal plant in New Haven, W.Va.

The second part of the system would treat and compress about 1.5 million metric tons of CO2 from the plant per year, then inject the gas into rock formations about 1.5 miles (2.4 kilometers) below the surface, where it would be permanently stored.

The company said it would terminate an agreement with the U.S. Department of Energy, which had offered AEP $334 million to cover part of the costs of the carbon storage project. The project was to be completed in four phases and begin commercial operation in 2015.

A similar plant using different technology, proposed for Taylorville, Ill., by privately held power generator Tenaska, was scuttled in January after Illinois lawmakers defeated legislation that would have allowed the company to pass through the $3.5 billion cost of the project to utility customers. The Energy Department had offered the company up to $2.6 billion in loan guarantees and a $417 million tax credit to support construction of the plant.

Other low-carbon coal projects are moving ahead.

Southern Co.’s (SO) Mississippi Power utility is building a $2.4 billion, 580-megawatt low-emission coal-fired power plant in Kemper County, Miss. The plant, which was approved by state regulators, is designed to convert coal or lignite into a gas, which is then used to generate electricity, with lower emissions than a traditional coal plant. The company obtained a $270 million grant from the Department of Energy and $412 million in federal tax credits to support construction of the project.

Another low-carbon coal project is being developed by a coalition of utilities and coal companies called FutureGen. The $1.3 billion project would retrofit a 200-megawatt Ameren Corp. (AEE) coal plant in Meredosia, Ill., with so-called advanced oxy-combustion technology and build pipelines to ship captured CO2 to a nearby storage facility. A federal environmental review of the project, which has $1 billion in federal funding, is still pending.

AEP, one of the nation’s largest utilities and one of the largest coal-fired power generators, is still focused on cutting emissions. The company has estimated that it will likely to have to modify or shut down several of its older coal-fired power plants under pending federal limits on traditional pollution that could cost $6 billion to $8 billion over the next nine years.

Shares of AEP closed Thursday about 1% lower at $37.55.

-By Cassandra Sweet, Dow Jones Newswires; 415=269-4446; cassandra.sweet@dowjones.com

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