Environmental Leader

The American Electric Power settlement marks a significant victory for the power industry, which has opposed the “New Source Review” rule, saying that it penalizes them for efficiency improvements, the Washington Post reports.

The AEP case centers on whether the utility had adequately updated its aging plants with new pollution-control technology when it modified them, an issue that falls under the New Source Review rule.

In paragraph 133 of the AEP consent decree, in which the utility agreed to install $4.6 billion in pollution-control measures at 16 existing plants it has expanded over the years and pay $75 million in penalties, is a section that assures AEP that the government will not pursue any action stemming from the “modification” of these plants between now and Dec. 31, 2018, according to the Post.

The Post goes on to say that the settlement guarantees that AEP will not face federal prosecution if its activities over the next decade trigger this sort of federal review.

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