AEP seeks short MATS extension for doomed Tanners Creek coal plant

The Indiana Department of Environmental Management is taking comment until Jan. 15, 2015, on a draft permit change that would allow Indiana Michigan Power some extra Mercury and Air Toxics Standards (MATS) compliance time before it permanently shuts its coal-fired Tanners Creek Plant.

Indiana Michigan Power, a unit of American Electric Power (NYSE: AEP), submitted anapplication to IDEM on March 25, 2014, for a 45-day extension of the April 16, 2015, compliance date for MATS. The 45-day extension was requested for Tanners Creek Plant Units 1, 2, 3 and 4.

“Indiana Michigan Power, dba American Electric Power, Tanners Creek Plant has made a demonstration sufficient to show that the coal-fired boilers, constructed in 1951, 1952, 1954 and 1964 and identified as Units 1, 2, 3, and 4 respectively, shall have a 45-day extension of the April 16, 2015 compliance date to and including May 31, 2015 for the Mercury and Air Toxics Standards (‘MATS’),” said an IDEM notice.

Indiana Michigan Power plans to retire the coal-fired Tanners Creek Units 1-4 by June 2015, with 200 MW of wind capacity the primary addition to its generating mix coming up. The current capacity plan for I&M includes the purchase of the additional 200 MW (nominal/nameplate rating) block of wind energy from the Headwaters wind project, which is expected to be in service by the end of 2014. I&M also plans to install about 16 MW of utility-scale solar photovoltaic facilities by the end of 2016. No other new capacity additions are under construction, or have been approved for construction, for I&M, said Jon MacLean.

MacLean provided testimony for I&M in an annual power supply cost recovery plan filed Sept. 30 at the Michigan Public Service Commission. MacLean is Manager-Resource Planning in the Corporate Planning & Budgeting Department of American Electric Power Service Corp., a wholly owned subsidiary of AEP.

The Tanners Creek station is located in Dearborn County, Indiana, and consists of four coal units with a total nominal capacity of 995 MW. The fuel requirements of TC 1-3, for as long as the units have left, will be met from eastern bituminous sources. Tanners Creek 4, similar to I&M’s Rockport plant, can use a blend of subbituminous and bituminous coals. Because of stricter EPA emissions standards, all units of Tanners Creek are scheduled to be retired in May 2015.

I&M expects the coal inventory at Tanners Creek to be depleted by February 2015, with the plant from there receiving only what is expected to be burned each month after that until full retirement of the plant.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.