American Electric Power (AEP) unit Indiana Michigan Power will retire the 500 MW coal-fired Tanners Creek 4 generating unit in Lawrenceburg, Indiana, along with the other generating units at the plant.
The decision to retire Tanners Creek Units 1 – 3 (495 MW) by mid-2015 was announced in June 2011. An agreement reached in February 2013 provided the option of refueling or retiring Tanners Creek 4.
Analysis found that projections for limited electricity demand growth, combined with the amount of generation currently available to serve Indiana Michigan customers, make it financially unfeasible to refuel Tanners Creek 4. All four generating units at Tanners Creek will be retired by mid-2015.
About 115 employees working at Tanners Creek Plant will be impacted by the plant closure. AEP will work to find job opportunities for displaced employees at other AEP facilities. Employees whose positions are eliminated and who do not find other positions with the company will be considered for severance benefits.
AEP previously announced the retirement of 6,676 MW of coal-fueled generation to comply with new environmental regulations affecting coal-fueled power plants. With the addition of the Tanners Creek 4 retirement, AEP will retire 7,176 MW of coal-fueled generation by early 2016.