US-based utility American Electric Power (AEP) has agreed to stop burning coal at three of its power generating stations located in Ohio, Indiana, and Kentucky.

Under the revised terms of a 2007 settlement with the US EPA, the company is required to refuel or shutter its Tanners Creek Generating Station Unit 4, Muskingum River Power Plant Unit 5, and the Big Sandy Power Plant Unit 2.

With the revision, a total of about 2,0011W of the electric utility’s coal-fired capacity will retire, reported pennenergy.com.

The need to amend a requirement for installation of flue gas desulfurization technology at AEP’s Rockport coal-fired station in Southern Indiana has been agreed by all parties.

The utility will now install dry sorbent injection technology at the coal-fired plant, as part of an emissions reduction plan.

In addition, the company will also be required to either retire both Rockport units by 2028 or upgrade it so as to achieve at least 98% of sulfur dioxide created by burning coal at those units.

AEP will also develop 50MW of solar or wind power in 2013, in addition to 150MW of renewable power in Indiana or Michigan by 2015.

Headquartered in Ohio, the company serves over five million customers in 11 states of the US.