American Electric Power Co. (NYSE: AEP) said the company would close 13 percent less coal-fired generation than initially planned because of $940 million in support from the state of Kentucky to keep a unit operating there.
Bloomberg reports that the company would now close 5,138 MW after seeking a 31 percent rate increase in December to fund emissions control equipment needed to keep the Big Sandy Unit 2 open in Kentucky. State regulators have reportedly indicated that AEP may be able to recover $1 billion from customers that is needed to keep the unit operating.
AEP announced in June that it would retire as much as 5,909 MW of coal capacity because of environmental regulations from the U.S. Environmental Protection Agency.
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