AEP, Buckeye Power to construct emission control systems at Cardinal Plant

COLUMBUS, Ohio, August 2, 2001 – American Electric Power and Buckeye Power Inc. announced today their plans to construct new emission control systems at their jointly owned Cardinal Plant in Brilliant, Ohio.

When in operation, the selective catalytic reduction (SCR) systems will reduce nitrogen oxide (NOx) emissions on each of the plant௿½s three generating units by about 90 percent. Both companies are reducing NOx emissions as part of an effort to comply with new U.S. Environmental Protection Agency regulations.

Construction of SCRs for the three units is expected to be completed by May 2003. The new emission controls will be in operation during the summer ozone season. Cardinal Units 1 and 2 each have a generating capacity of 600 megawatts, while Unit 3 has a generating capacity of 630 megawatts.

Cardinal Plant, which began operation in 1967, represents the first-ever alliance of an investor-owned electric utility, AEP, and a member-owned electric generating and transmission company, Buckeye Power, an organization of 25 rural electric cooperatives, to construct and operate a power station to serve their respective electric customers. Under terms of the agreement, AEP owns Cardinal Unit 1 while Buckeye Power owns Units 2 and 3. Cardinal Operating Company, which is owned by AEP and Buckeye Power, operates Cardinal Plant.

“We plan to move forward with the construction of a selective catalytic reduction system on Unit 1 at the Cardinal Plant,” said John F. Norris, AEP௿½s senior vice president of operations and technical services. “The Cardinal project will continue our NOx compliance effort which began with installation of low-NOx burners on the AEP system. Last year, we started construction of our first SCR system at our Gavin Plant, and earlier this year we began building SCRs at our Mountaineer Plant and Unit 3 of our Amos Plant.”

“Units 2 and 3 at Cardinal Plant represent all of Buckeye Power௿½s currently operating generating capacity,” said Richard K. Byrne, president of Buckeye Power. “Installing SCR systems on each of these two units will enable Buckeye Power to be in full compliance with the U.S. EPA௿½s new regulations that require reductions in nitrogen oxide emissions.”

AEP ProServ Inc., an AEP subsidiary that provides a full array of project management, engineering, construction, operations, technical services and maintenance expertise, will manage the SCR construction project for all three units at Cardinal.

AEP and Buckeye Power will use a urea-to-ammonia system known as Ammonia on Demand (AOD) for the SCRs௿½ ammonia supply. The urea-based system will be similar to one that has already been built at AEP௿½s Gavin Plant at Cheshire, Ohio, and to the ones that are under construction at AEP௿½s Mountaineer Plant in New Haven, W.Va., and Unit 3 of AEP௿½s John Amos Plant near Winfield, W.Va.

SCR uses a chemical reaction to break down the NOx present in the exhaust gases that are released during the coal combustion process. The NOx is broken down into elemental nitrogen and water.

The cost of installing SCR systems on Cardinal Units 2 and 3 will amount to approximately $135 million, according to David J. Hartnagel, director of power generation for Buckeye Power. AEP will invest approximately $65 million to install the SCR system on Unit 1, Norris said.

Norris indicated that while the SCR technology being deployed on the three Cardinal units is the one on which the U.S. EPA relied to develop the new NOx rules, AEP is continuing to explore new technological options that may ultimately prove to be more efficient and cost-effective.

AEP has invested more than $160 million since 1993 to install low-NOx burners on its Midwestern power plants. As a result, the company had reduced NOx emission rates by approximately 30 percent below previous levels. All three Cardinal units are currently equipped with low-NOx burners.

American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity, making it America௿½s largest generator of electricity. The company is also a wholesale energy marketer and trader, ranking second in the U.S. in electricity volume with a growing presence in natural gas. AEP provides retail electricity to more than 7 million customers worldwide and has holdings in the U.S. and select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.

Buckeye Power is a member-owned generation and transmission cooperative supplying power and energy to the electric distribution cooperatives in Ohio. The cooperatives௿½ certified service territory covers nearly 40 percent of the land area in the state and encompasses 77 of Ohio௿½s 88 counties. They serve more than 330,000 homes, farms, businesses and industries.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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