The Supreme Court granted separate requests by SWEPCO and the Arkansas Public Service Commission (APSC) after a June 24, 2009, ruling by the Arkansas Court of Appeals overturned the APSC’s decision to grant a Certificate of Environmental Compatibility and Public Need (CECPN) for construction of the coal-fired Turk Plant.

Paul Chodak, president and chief operating officer of SWEPCO, said: “Obviously we are very pleased that the Supreme Court has chosen to review the case. This is an important case – both for the Turk Plant and for the process used to approve major utility projects in Arkansas for more than 30 years. We believe the record in the case will show that the approval process was correct and that the Turk Plant approval should stand.”

SWEPCO is continuing construction of the $1.6 billion plant in Hempstead County, Arkansas. By law, the CECPN issued by the APSC remains in effect during the appeal process.

A CECPN is legal authorization granted by the state of Arkansas to a regulated utility to construct a power plant or transmission facilities and recover the costs from Arkansas retail customers through approved rates. It is only issued after public and formal review by the state and interested stakeholders.

The APSC granted SWEPCO’s application for a CECPN on November 21, 2007, and issued an amended CECPN on December 31, 2007. SWEPCO began construction of the plant in Hempstead County after the company received an air permit from the Arkansas Department of Environmental Quality in November 2008. The Louisiana Public Service Commission and Public Utility Commission of Texas approved construction of the plant in March 2008 and July 2008, respectively.

The timetable for the case before the Arkansas Supreme Court has not been determined. The court may elect to accept additional briefs and/or oral arguments, but the court has not revealed how it will proceed with the case.

As of September 30, 2009, approximately $830m had been spent on the Turk project, including $622m by SWEPCO for its 73% share of the plant. SWEPCO had an additional $375m in contractual commitments for the plant.

SWEPCO’s new generation projects include the 600MW Turk Plant in southwest Arkansas, designed to meet the company’s base load needs, with a projected completion date of late 2012.

The 508MW combined-cycle, natural gas-fueled Stall Unit is designed to serve intermediate load – between base load and peak load – and is under construction in Shreveport, Louisiana. It is scheduled for completion in the summer of 2010. The 340MW simple-cycle, natural gas-fueled Mattison Plant in Tontitown, Arkansas, was completed in 2007 and is now helping to meet peak demand on the SWEPCO system.

AEP said that the Turk Plant’s coal combustion technology will use less coal and produce fewer emissions, including carbon dioxide, than traditional pulverized coal plants. The plant will use low-sulfur coal and will include emission control technologies, including a design that allows for the retrofit of carbon dioxide controls.