Surprise: AEP chief says Clean Power Plan can be a 'catalyst' for transforming the industry
Ohio is among the dozens of states suing the U.S. EPA over its wide-ranging Clean Power Plan, but one of the state’s coal-centric electric utilities says it can help as it diversifies its electric generation mix.
President Barack Obama in August introduced the plan to reduce carbon emissions from the country’s power supply. Many states and utilities vowed to fight it, arguing high implementation costs and a power overreach.
AEP's Block O solar array on the Ohio State University campus.
American Electric Power Company Inc. might seem an obvious critic of the plan; just a decade ago, coal made up 74 percent of its fuel supply.
But the Columbus utility (NYSE:AEP) is steadily changing the mix. It projects its coal use to fall to 51 percent next year, with its former share taken up by natural gas, renewables and energy efficiency.
Using less coal is one of the hallmarks of the power plan. CEO Nick Akins said large-scale solar farms, instead of solar panels installed on rooftops, is one way AEP can help states meet the carbon-reduction standards.
“Utility-scale solar can really address the needs of the Clean Power Plan and other objectives that we have,” Akins said Tuesday at the Edison Electric Institute’s annual meeting.
He acknowledged the surprise the response might elicit, but said the plan can help spur new projects for AEP.
“We believe that it can be, if done wisely and rationally, a catalyst for the transformation that’s already occurring in our industry,” he said.
There’s been a large amount of coal power plant retirements in recent years to meet other regulations, and a need to replace them with new generation.
The EPA plan, Akins said, gives the power company an opportunity to work on plans with the 11 states in which it operates.
“That’s a great way for us to continue to invest in the resources of the future,” he said.
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Indiana Michigan Power Company (I&M) is an operating subsidiary of American Electric Power (AEP)