Tanners Creek Plant Retirement Part of AEP s Environmental Compliance Plan
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1 Tanners Creek Plant Retirement Part of AEP s Environmental Compliance Plan January 2015
2 AEP s environmental stewardship AEP is an environmentally responsible company. It supports regulations that achieve long-term environmental benefits while considering the impacts on customers, the economy and system reliability. AEP supports environmental regulation that is approached in a coordinated, realistic and costeffective manner. AEP does, and will continue to, comply with all environmental regulations. 2
3 Ongoing air quality improvements AEP has improved its environmental performance. Since 1990, AEP has reduced its NOx and SO 2 emissions by 80%. Mercury emissions have declined by nearly 60 percent since Between 2005 and 2013, AEP reduced its carbon dioxide emissions by 21 percent, exceeding President Barack Obama s Climate Action Plan target of achieving a 17 percent reduction by 2020 AEP will continue to improve the environmental performance of its power plants. 3
4 AEP s Power Plant Retirements By early 2016, AEP will retire more than 6,000 megawatts (MW) of coal-fired generating capacity at 11 power plants in seven states AEP s Tanners Creek Plant at Lawrenceburg, Indiana is one of the plants included in this retirement plan. The plant will officially be retired in mid-2015 The retirements are part of AEP s plan for complying with the Mercury Air Toxics Standards for existing power plants that were approved by the U.S. Environmental Protection Agency in December 2011 To meet compliance deadlines for new environmental regulations, AEP expects it will need to invest $3 billion to $4 billion 4
5 Tanners Creek Plant Tanners Creek Plant was the largest power generating facility on the AEP System when Unit 4 was completed in 1964 The plant s four units provide total generating capacity of 995 megawatts (MW) Unit 1, 145 MW, went on line in 1951; Unit 2, also 145 MW, in 1952; and Unit 3 with 205 MW in 1954 Unit 4, with capacity of 500 MW, became operational in
6 Decommissioning AEP has developed formal plans to decommission Tanners Creek Plant in a responsible manner that will safeguard the local environment AEP and Tanners Creek Plant will work with the Indiana Department of Environmental Management and other organizations to ensure that the Plant is decommissioned in compliance with all applicable regulatory requirements. When we complete decommissioning, the facility will be retired-in-place pending future decisions on demolition and site redevelopment. If appropriate, we will work with community leaders and local development commissions to determine whether all or part of this site can be redeveloped. 6
7 Overall impacts to employees and communities AEP is implementing a plan to assist Tanners Creek Plant s 88 employees in finding positions at other unaffected facilities. Whether they choose to retire, find other employment within the AEP system or to leave AEP, the company will provide resources and services to assist them Tanners Creek Plant s contribution to the local economy: Annual Payroll $7.7 million (2014) $10.7 million (2013) Payroll Taxes -- $3.4 million (2013) Local property tax payments of approximately $1.9 million 7
8 Leaving a Legacy Tanners Creek Plant employees have taken great pride in providing electricity while protecting air and water quality, recycling materials and maintaining an exemplary record of public and work safety. In 2012, the plant was awarded the Indiana Governor s Workplace Safety Award in two categories Education and Outreach: Internal, and Education and Outreach: External. The awards reflect the hard work and active engagement of Tanners Creek s employees and contractors. The plant and its employees have been a part of the Lawrenceburg community for more than 60 years. We thank the leaders and citizens of Lawrenceburg for the opportunity to live and grow with them. 8
9 For more information Additional information, fact sheets, FAQs, photos and brief videos are available at: 9
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