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Southwest Power Pool Board Approves New Process to Accelerate High Impact Large Load Connections

LCG, September 16, 2025--Southwest Power Pool’s (SPP) Board of Directors today announced that the Board approved a process to facilitate the connection of large users of electricity to the power grid while continuing to support energy needs for the entire region. SPP's new process is designed to incorporate transmission service, generation, load interconnection and other relevant reliability studies into a single framework that enables timely, informed decision-making and action.

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Longroad Energy Announces Financial Close of 1000 Mile Solar Project in Texas

LCG, September 15, 2025--Longroad Energy announced today the financial close of 1000 Mile Solar, its 300 MWac (400 MWdc) solar project in Yoakum County, Texas. Longroad Energy finalized a long-term offtake agreement with Meta late last year in the form of an Environmental Attributes Purchase Agreement, which includes a financial settlement arrangement for the entire energy output of 1000 Mile Solar.

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Industry News

Costs Rise for AEP's Proposed New IGCC Plant in West Virginia

LCG, June 22, 2007--American Electric Power (AEP) announced earlier this week that the estimated cost to build its coal-fired, power plant that employs an advanced, Integrated Gasification Combined Cycle (IGCC) design has risen to $2.23 billion, which is over 70 percent more than previous estimates. The cost increases are due to increases in steel and other construction material costs, as well as higher labor costs, according to the company.

The proposed coal plant would have an electric generating capacity of about 630 MW and would be located adjacent to the existing Mountaineer Plant. The new plant is scheduled to commence operations by mid-2012.

AEP?s subsidiary, Appalachian Power Co., filed testimony this week in West Virginia with the Public Service Commission requesting a $108 million per year rate increase to support the construction.

The significant rise in costs for a new coal plant is not unusual. In May 2005, Duke filed an application with the North Carolina Utilities Commission to build two 800-MW, coal-fired electric generating units at the existing Cliffside Steam Station in North Carolina. The estimated cost to build the traditional, pulverized coal plant was $2 billion. In October 2006, Duke filed a revised, cost estimate with the Commission of $3 billion, which represents a cost increase of 50%.

Appalachian Power filed an application in January 2006 with the Public Service Commission of West Virginia seeking authority to construct the IGCC plant. AEP also signed an agreement with GE Energy and Bechtel to estimate the cost and equipment needs for building both the West Virginia facility and a similar plant in Ohio.

In October of last year, AEP announced that it filed environmental permit applications with West Virginia and Ohio to build the new plants that employ the advanced, IGCC design.

The IGCC process converts coal into a synthesis gas and minimizes most of the sulfur dioxide (SO2), nitrogen oxides (NOx), mercury (Hg) and other emissions before the gas fuels a combustion turbine generator. The hot exhaust gas from the turbine heats water to produce steam to power a steam turbine and generate electricity a second time.

In general, the improved thermal efficiency and reduced emissions of an IGCC plant are expected to provide benefits that may out-weigh the higher capital costs over the economic life of the plant. In addition, the IGCC design is expected to provide for a more cost-effective means to capture carbon dioxide (CO2) relative to traditional coal plants.

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