from The Charleston Gazette
A neighboring state on Monday rejected plans by American Electric Power to build a $2.23 billion clean-coal plant in West Virginia. The company plans to appeal the decision.

Virginia’s State Corporation Commission on Monday denied a request from Columbus, Ohio-based AEP to build the Mason County plant.

Virginia’s approval is needed because AEP customers in that state would help pay for construction of the plant.

The Virginia commission also rejected an AEP proposal to increase rates to start recovering construction costs from customers.

The commission said the plant’s estimated cost, which dates back to November 2006, isn’t credible. It also said AEP has no plans to provide a detailed, updated estimate until it gets full regulatory approval.

“This [proposal] represents an extraordinary risk that we cannot allow the ratepayers of Virginia in APCo’s service territory to assume,” the commission said in a statement. AEP operates as Appalachian Power in Virginia and West Virginia.

AEP spokesman Pat Hemlepp said the company is disappointed, but plans to seek a rehearing. He added that AEP plans to provide more information about the 629-megawatt plant’s cost.

Part of the problem with cost is AEP’s plan for the Integrated Gasification Combined Cycle plant, which turns coal into a gas, then burns it. AEP argues the process makes it easier to remove carbon dioxide and other pollutants.

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