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EPA Announces Proposed Rule Action to Revise ELG's and Support Reliable, Affordable Coal-fired Power Plants

LCG, May 14, 2026--The U.S. Environmental Protection Agency (EPA) announced today that it is proposing a rule to revise wastewater limits, known as effluent limitations guidelines (ELG), for steam electric power plants that will help improve grid reliability and lower electricity prices while continuing to support clean and safe water resources. If finalized, the EPA's proposal is estimated to reduce electricity generation costs by as much as $1.1 billion annually, which could provide cost-savings to American consumers.

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DOE Awards $94 Million to Eight American Companies to Accelerate SMR Deployments and Develop Supply Chain

LCG, May 14, 2026--The U.S. Department of Energy (DOE) today announced the selection of eight companies to support the near-term deployment of advanced light-water small modular reactors (SMRs) in the United States. The DOE states that awardees will collectively receive more than $94 million in Federal cost-shared funding to spur additional Gen III+ SMR deployments by addressing key gaps that have hindered the domestic nuclear industry in licensing, supply chain, and site preparation.

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Industry News

Costs Rise for AEP's Proposed New IGCC Plant in West Virginia

LCG, June 22, 2007--American Electric Power (AEP) announced earlier this week that the estimated cost to build its coal-fired, power plant that employs an advanced, Integrated Gasification Combined Cycle (IGCC) design has risen to $2.23 billion, which is over 70 percent more than previous estimates. The cost increases are due to increases in steel and other construction material costs, as well as higher labor costs, according to the company.

The proposed coal plant would have an electric generating capacity of about 630 MW and would be located adjacent to the existing Mountaineer Plant. The new plant is scheduled to commence operations by mid-2012.

AEP?s subsidiary, Appalachian Power Co., filed testimony this week in West Virginia with the Public Service Commission requesting a $108 million per year rate increase to support the construction.

The significant rise in costs for a new coal plant is not unusual. In May 2005, Duke filed an application with the North Carolina Utilities Commission to build two 800-MW, coal-fired electric generating units at the existing Cliffside Steam Station in North Carolina. The estimated cost to build the traditional, pulverized coal plant was $2 billion. In October 2006, Duke filed a revised, cost estimate with the Commission of $3 billion, which represents a cost increase of 50%.

Appalachian Power filed an application in January 2006 with the Public Service Commission of West Virginia seeking authority to construct the IGCC plant. AEP also signed an agreement with GE Energy and Bechtel to estimate the cost and equipment needs for building both the West Virginia facility and a similar plant in Ohio.

In October of last year, AEP announced that it filed environmental permit applications with West Virginia and Ohio to build the new plants that employ the advanced, IGCC design.

The IGCC process converts coal into a synthesis gas and minimizes most of the sulfur dioxide (SO2), nitrogen oxides (NOx), mercury (Hg) and other emissions before the gas fuels a combustion turbine generator. The hot exhaust gas from the turbine heats water to produce steam to power a steam turbine and generate electricity a second time.

In general, the improved thermal efficiency and reduced emissions of an IGCC plant are expected to provide benefits that may out-weigh the higher capital costs over the economic life of the plant. In addition, the IGCC design is expected to provide for a more cost-effective means to capture carbon dioxide (CO2) relative to traditional coal plants.

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