Kentucky Power Application for Environmental Control Retrofit of Big Sandy 2

In December 2011 Kentucky Power, owned by American Electric Power (AEP), one of the country’s largest electric holding companies, requested approval for a Certificate of Public Convenience and Necessity (CPCN) and associated cost recovery to invest approximately $950 million on environmental compliance measures at its Big Sandy Unit 2, an 800 MW coal unit approximately 40 years old. Synapse, testifying on behalf of the Sierra Club, demonstrated that the proposed investment was not reasonable because it was more cost-effective for Kentucky Power to retire that unit and meet its capacity and energy requirements from other resources. The utility withdrew its request on May 30, 2012, just days before the Kentucky Commission was scheduled to issue its Order.