AEP WINS 5-YEAR DELAY ON ITS CLEAN-COAL PLANT

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, January 16, 1992                   TAG: 9201160049
SECTION: BUSINESS                    PAGE: C7   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium
AEP WINS 5-YEAR DELAY ON ITS CLEAN-COAL PLANT
The U.S. Department of Energy said Wednesday it will approve American Electric Power Co.'s request to delay until 1999 construction of a "clean coal" demonstration power plant in West Virginia.
The changes proposed by Appalachian Power Co.'s parent will raise the cost of the plant by more than a quarter-billion dollars.
Delay of the proposed 340-megawatt plant at New Haven, W.Va., in Apco territory, will allow AEP time to incorporate design improvements from several smaller scale test units, the utility system said.
AEP told the Energy Department the urgency of proceeding with the demonstration plant has been reduced by slower-than-expected growth in the demand for electricity.
AEP had planned to bring the plant into service in 1996, but its new proposal is to delay the start of operations until 2002, more closely matching its anticipated need for electric power.
AEP also proposed to move the project from the Sporn plant to the adjacent Mountaineer plant. The former is operated by another AEP affiliate, Ohio Power Co. The Mountaineer plant is an Apco operation.
Rather than replacing older, conventional boilers as planned, AEP now proposes to build a new plant costing about $918 million, an increase of $258 million.
The Department of Energy, in return for continuing with the project, said it obtained AEP's commitment to build the advanced coal plant as the next base-load power station for Apco's region. The department said the plant will have new requirements intended to boost commercial prospects for the "pressurized fluidized bed combustion" process. This involves burning coal with limestone, which captures sulfur dioxide and reduces emissions.
AEP said it will pay all additional costs if the department agrees to remain a co-sponsor and maintain its original funding share of $185 million in the project. DOE said it will continue its joint sponsorship, at least through January 1994.
AEP said it will complete a new engineering study, costing $5.5 million, in two years. Actual use of the new technology in the demonstration plant still will be subject to state regulatory approval.

by Archana Subramaniam by CNB