The agreement American Electric Power reached with the Environmental
Protection Agency, eight states and 13 environmental groups over emissions
from 16 coal-fired power plants in Indiana, Kentucky, Ohio, Virginia and West
Virginia does not require the utility to do much more than what it already has
announced in recent months, utility officials told Platts on Tuesday.

"The settlement does not require any scrubber installations at plants that we
have not already announced and factored into our future coal purchase plans,
except the scrubbers on Rockport units 1 and 2" in Indiana, said AEP
spokeswoman Melissa McHenry.

"Those scrubbers will not be installed until 2017 and 2019, more than 10 years
from now," she said. "All of the other scrubber retrofits have been completed
or are in progress, either in construction or site preparation."

EPA had a different view of the settlement. The agency said the agreement is
the single largest environmental enforcement by several measures. For example,
it is the largest settlement in terms of the value of injunctive relief, and
will result in the largest amount of emission reduction from stationary
sources, the agency said in a statement.

AEP will install pollution control equipment to reduce and cap sulfur dioxide
and nitrogen oxide emissions by more than 813,000 short tons/year when fully
implemented, EPA said. By installing these pollution control measures, the
plants will emit 79% less SO2 and 69% less NOx, compared to 2006 emissions.

The agreement imposes caps on emissions at two facilities in Moundsville, St.
Albans, Glasgow and two facilities in New Haven, West Virginia; Louisa,
Kentucky; Glen Lyn and Carbo, Virginia; Brilliant, Conesville, Cheshire,
Lockburne and Beverly, Ohio; and Rockport and Lawrenceburg, Indiana.

McHenry said there are benefits for the utility from having more of its fleet
scrubbed, other than emissions reductions. "Any plant on which we install a
scrubber does have more fuel flexibility," she said.

--Marcin Skomial, marcin_skomial@platts.com, and
--Tom Tiernan, tom_tiernan@platts.com

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