AEP Chief Operating Officer, Charles Patton and Mr. Larry Jackson head of external affairs and the Shoreline Management Plan briefed members of the Rotary Club of SML on the future of power generation. Mr. Patton discussed changes made to power plant generation resulting from Environmental Protection Agency requirements for cleaner burning fuels.
Costs of electricity has increased as a result of the EPA requirements especially as it relates to coal powered facilities. Mr. Patton stated that coal would still be used as a source of power for some plants but that EPA requirements have erased a competitive price edge AEP has had in Virginia over other power generating companies such as Dominion Power. The need to install expensive scrubbers on existing coal powered facilities and the move to more shale and natural gas powered plants has resulted in increased cost of electricity. for transmission. The abundance of shale and natural gas has made generating electricity from those energy sources cheaper than coal. Based on current costs, Mr. Patton indicated future plants would be gas powered but clean coal technology would still be used.
According to Mr. Patton, 68% of an electric bill’s cost comes from generation of electricity. An additional 25% is due to distribution costs and 7% from transmission.
Picture caption: Rotary Club President Dave English (right) thanks AEP COO, Mr. Charles Patton, Rotarian and AEP employee Carolyn Gordon and Mr. Larry Jackson for their informative presentation to club members on the future of power generation.
