American Electric Power announced today that it is adding another coal-fired power plant to its growing list of soon-to-be-retired facilities.
This latest addition, a 585 MW Ohio facility, brings the utility's grand total to 3,123 MW of coal-fueled generation retired by 2016 for its Ohio subsidiary.
In its press release, AEP noted that both environmental regulation costs and "current market conditions" have made it very unlikely that the utility will continue to use this unit in the coming years, although there is a possibility of a potential natural gas refuel.
This latest decision won't affect AEP's 2013 operating earnings, but the company will take a $150 million to $170 million non-operating pre-tax hit in Q2. AEP also noted that it will continue to stick with its previous earnings growth rate guidance of 4% to 6%.
Accounting for this latest retirement plan, AEP Ohio's total generation capacity will clock in at 10,725 MW, which will be "mostly" comprised of "clean coal" and natural gas plants, as well as a small hydro unit.
The article AEP Expects to Retire Over 3,000 MW of Coal by 2016 originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.