Emissions control standard no problem for Vectren

Vectren (NYSE: VVC) said it is well-positioned to comply with the U.S. Environmental Protection Agency’s (EPA) recently finalized Cross State Air Pollution Rule without additional significant capital investments.

Since 2001, Vectren has installed more than $410 million of emissions control equipment on all of its coal-fired generation in southwestern Indiana. Out of Vectren’s 1,300 MW of generating capacity, 1,000 MW is coal-fired.

As a result of retrofits and upgrades, Vectren's electric generation fleet is now 100 percent scrubbed for sulfur dioxide, 90 percent controlled for nitrogen oxide and substantially controlled for particulate matter and mercury.

The rule, which was finalized on July 7, will be implemented next year in 27 states. EPA estimates it will cost U.S. power plant operators $800 million a year in 2014 in addition to the $1.6 billion in capital investments to comply with a 2005 rule that remained in effect until EPA drafted a new one.

Vectren has two power plants: The 405 MW F.B. Culley and the 700 MW A.B. Brown. The utility shares ownership of the 150 MW Warrick Unit 4 with Alcoa.

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