SWEPCO's John W. Turk, Jr. Power Plant Begins Commercial Operation December 20
In SW Arkansas
SHREVEPORT, La., Dec. 20, 2012
SHREVEPORT, La., Dec. 20, 2012 /PRNewswire/ --Southwestern Electric Power Co.
(SWEPCO), an operating unit of American Electric Power (NYSE: AEP), today
began commercial operation of the new 600-megawatt (MW) John W. Turk, Jr.
Power Plant near Fulton, Ark., in Hempstead County.
Turk, the first ultra-supercritical generating unit to go into operation in
the U.S., generates electricity more efficiently at higher temperatures,
requires less coal and produces fewer emissions to generate the same amount of
power as existing coal units.
"The Turk Plant is yet another example of AEP's long history of advancing
coal-fueled generating technologies. AEP built our nation's first
supercritical coal-fueled power plants decades ago. At Turk, we've deployed
ultra-supercritical generating technology, and built one of the nation's
cleanest, most efficient pulverized coal generating plants," said Nicholas K.
Akins, AEP president and chief executive officer. "Turk will provide reliable,
affordable power for our customers and project partners and will provide
significant benefits for the area's economy. I commend our employees and the
business and community partners who helped make Turk happen."
SWEPCO owns 73 percent (440 MW) of the $1.8 billion, Turk Plant. Co-owners
are Arkansas Electric Cooperative Corp. (AECC), 12 percent for its 490,000
members; East Texas Electric Cooperative (ETEC), 8 percent for its 178,000
customers; and Oklahoma Municipal Power Authority (OMPA), 7 percent, serving
39 municipal electric systems in the state.
"This is a milestone addition of very efficient generation during SWEPCO's
100^th anniversary to help meet the growing energy needs of all SWEPCO
customers, and we heartily thank our many supporters of the project these last
six years," said Venita McCellon-Allen, SWEPCO president and chief operating
officer. "We are so proud of the Turk Plant because it demonstrates our
commitment and ability to meet stringent environmental standards set by
federal and state regulatory agencies."
Construction of the Turk Plant began in November 2008, and the project
provided up to 2,200 construction jobs at the peak of employment in May 2011.
The plant will have 109 permanent positions and an estimated annual payroll of
$9 million. Turk will provide an additional $6 million in annual school and
county property tax revenues in Southwest Arkansas. The plant will serve
SWEPCO retail and wholesale customers in Louisiana and Texas, as well as the
ETEC customers. In Arkansas the plant will serve SWEPCO's wholesale customers
– the cities of Hope, Bentonville and Prescott – and the AECC members. OMPA
customers in Oklahoma also will benefit from the power produced at the Turk
SWEPCO's balanced approach to new generation, announced in 2006, includes both
coal and natural gas plants to support generation fuel diversity. The
coal-fueled Turk Plant is a base-load facility designed to meet customers'
need for power that is consistently available 24/7. SWEPCO also added peaking
generation to its fleet through the 300-MW natural gas-fueled Harry D.
Mattison Power Plant in Northwest Arkansas, which came on line in 2007; and
intermediate generation from the 508-MW combined-cycle natural gas-fueled J.
Lamar Stall Unit at Arsenal Hill in Shreveport, La., which came on line in
The Turk Plant is located on about 3,000 acres between Fulton and McNab, Ark.
Tim Gross is the plant manager. Fuel for the plant is low-sulfur coal from the
Powder River Basin in Wyoming.
The new facility is named for John W. Turk, Jr., who was president and chief
executive officer of SWEPCO from 1983-1988. A Texas native and graduate of the
University of Texas, Turk worked for SWEPCO for 39 years. He passed away in
SWEPCO serves more than 524,000 customers in three states, including 114,000
in western Arkansas, 228,000 in northwest and central Louisiana, and 182,000
in East and North Texas. SWEPCO's headquarters are in Shreveport, La. News
releases and other information about SWEPCO can be found at www.swepco.com.
American Electric Power is one of the largest electric utilities in the United
States, delivering electricity to more than 5 million customers in 11 states.
AEP ranks among the nation's largest generators of electricity, owning nearly
38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's
largest electricity transmission system, a nearly 39,000-mile network that
includes more 765 kilovolt extra-high voltage transmission lines than all
other U.S. transmission systems combined. AEP's transmission system directly
or indirectly serves about 10 percent of the electricity demand in the Eastern
Interconnection, the interconnected transmission system that covers 38 eastern
and central U.S. states and eastern Canada, and approximately 11 percent of
the electricity demand in ERCOT, the transmission system that covers much of
Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power
(in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana
Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and
Southwestern Electric Power Company (in Arkansas, Louisiana and east and north
Texas). AEP's headquarters are in Columbus, Ohio. News releases and other
information about AEP can be found at www.aep.com.
This report made by American Electric Power and its Registrant Subsidiaries
contains forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Although AEP and each of its Registrant
Subsidiaries believe that their expectations are based on reasonable
assumptions, any such statements may be influenced by factors that could cause
actual outcomes and results to be materially different from those projected.
Among the factors that could cause actual results to differ materially from
those in the forward-looking statements are: the economic climate and growth
in, or contraction within, AEP's service territory and changes in market
demand and demographic patterns; inflationary or deflationary interest rate
trends; volatility in the financial markets, particularly developments
affecting the availability of capital on reasonable terms and developments
impairing AEP's ability to finance new capital projects and refinance existing
debt at attractive rates; the availability and cost of funds to finance
working capital and capital needs, particularly during periods when the time
lag between incurring costs and recovery is long and the costs are material;
electric load and customer growth; weather conditions, including storms, and
AEP's ability to recover significant storm restoration costs through
applicable rate mechanisms; available sources and costs of, and transportation
for, fuels and the creditworthiness and performance of fuel suppliers and
transporters; availability of necessary generating capacity and the
performance of AEP's generating plants; AEP's ability to recover Indiana
Michigan Power's Donald C. Cook Nuclear Plant Unit 1 restoration costs through
warranty, insurance and the regulatory process; AEP's ability to recover
regulatory assets and stranded costs in connection with deregulation; AEP's
ability to recover increases in fuel and other energy costs through regulated
or competitive electric rates; AEP's ability to build or acquire generating
capacity, including the Turk Plant, and transmission line facilities
(including the ability to obtain any necessary regulatory approvals and
permits) when needed at acceptable prices and terms and to recover those costs
(including the costs of projects that are cancelled) through applicable rate
cases or competitive rates; new legislation, litigation and government
regulation, including requirements for reduced emissions of sulfur, nitrogen,
mercury, carbon, soot or particulate matter and other substances or additional
regulation of flyash and similar combustion products that could impact the
continued operation and cost recovery of AEP's plants; timing and resolution
of pending and future rate cases, negotiations and other regulatory decisions
(including rate or other recovery of new investments in generation,
distribution and transmission service and environmental compliance);
resolution of litigation (including AEP's dispute with Bank of America); AEP's
ability to constrain operation and maintenance costs; AEP's ability to develop
and execute a strategy based on a view regarding prices of electricity,
natural gas and other energy-related commodities; changes in the
creditworthiness of the counterparties with whom AEP has contractual
arrangements, including participants in the energy trading market; actions of
rating agencies, including changes in the ratings of debt; volatility and
changes in markets for electricity, natural gas, coal, nuclear fuel and other
energy-related commodities; changes in utility regulation, including the
implementation of electric security plans and related regulation in Ohio and
the allocation of costs within regional transmission organizations, including
PJM and SPP; accounting pronouncements periodically issued by accounting
standard-setting bodies; the impact of volatility in the capital markets on
the value of the investments held by AEP's pension, other postretirement
benefit plans and nuclear decommissioning trust and the impact on future
funding requirements; prices and demand for power that AEP generates and sells
at wholesale; changes in technology, particularly with respect to new,
developing or alternative sources of generation; and other risks and
unforeseen events, including wars, the effects of terrorism (including
increased security costs), embargoes and other catastrophic events.
SOURCE American Electric Power
Contact: Media, SWEPCO Corporate Communications, Scott McCloud,
+1-318-673-3532, Peter Main, +1-479-973-2526, Kacee Kirschvink,
+1-318-673-3394, or Analysts, Julie Sherwood, Director, Investor Relations,
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