FORT WAYNE, Ind. (AP) — Indiana Michigan Power will retire its entire Tanners Creek generating plant in Lawrenceburg by mid-2015 after agreeing earlier this year to stop burning coal there, the American Electric Power subsidiary said Tuesday.
The Fort Wayne-based utility said it is not financially feasible to refuel its last generating unit at the southeastern Indiana power station.
"Based on relatively flat electricity demand and the fact that our Indiana Michigan customers don't need additional generation at this time, we've determined that the cost of refueling Tanners Creek 4 is not the right capital investment," Nicholas K. Akins, AEP's president and chief executive officer, said in a news release.
Indiana Michigan Power announced two years ago that it would retire three of its four generating units at Tanners Creek by mid-2015. Then earlier this year, Columbus, Ohio-based AEP reached an agreement with the Environmental Protection Agency, eight states and several environmental groups to either refuel the fourth unit or retire it.
The utility said it will retire all four units by mid-2015.
Paul Chodak III, Indiana Michigan Power president and chief operating officer, said the Tanners Creek station's age, "combined with new environmental regulations, our successful energy efficiency programs and the fact that we currently don't need additional generation make retirement the best decision for our customers."
The company did not saw how old the plant was.
The plant currently employs about 115 employees. Workers whose positions are eliminated and who do not find another position with the company will be considered for severance benefits, AEP said.
Indiana Michigan Power has more than 582,000 customers in the two states.