Region 5 participated in a global New Source Review (NSR) settlement with American Electric Power (AEP) which resulted in a Consent Decree (CD) in December of 2007 covering 45 coal-fired electricity generating units at 16 plants. The 2007 Consent Decree and subsequent modifications included, among other terms, requirements to retrofit, retire, refuel or repower specific units at plants in the AEP Eastern System as well as adherence to system-wide NOx and SO2 emission caps. Unlike other utility settlements, the AEP Consent Decree does not include unit-specific emission rate limitations. To date, the CD has been modified six times.
On July 21, 2017, AEP filed a motion with the District Court seeking a fifth modification of the Consent Decree, which is currently stayed pending the outcome of negotiations. AEP argued in its motion that, due to a contract dispute with the owner and lessor of Rockport Unit 2, the circumstances upon which the Consent Decree was based have changed to such an extent that the modification of the Consent Decree is warranted. AEP requested relief from the obligation to install pollution control equipment at the Rockport plant. After extensive negotiations, the parties have agreed that the proposed fifth modification embodies a net benefit for the environment and human health, takes into consideration AEP?s economic considerations, and allows the United States and our co-plaintiffs to avoid protracted litigation of AEP?s motion. The central provi