Retrofit plans at Kentucky Power's coal-fired power plant canned

Kentucky Power, a subsidiary of AEP (NYSE: AEP), withdrew its application with the Public Service Commission of Kentucky on May 30 to retrofit the 800 MW Big Sandy coal-fired power plant near Louisa, Ky.

The company planned to invest nearly $940 million to build a dry scrubber system for the 800 MW generating unit. A separate 278 MW unit is scheduled to retire at the end of 2014.

Kentucky Power said in its withdrawal request that it wanted to re-evaluate alternatives to meet requirements under the Cross State Air Pollution Rule, the Mercury and Air Toxic Standards and other regulations.

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