Utility to close 800-megawatt coal plant in Kentucky

LOUISVILLE, Ky. (AP) - A utility company says an 800-megawatt coal-fired power plant in eastern Kentucky that was once slated for costly environmental upgrades will instead be shut down.

Kentucky Power announced Wednesday it would retire Big Sandy Power Plant's Unit 2 in 2015.

The utility, a subsidiary of American Electric Power, withdrew a plan in May to spend nearly $1 billion to add a scrubber designed to produce cleaner emissions and comply with federal air regulations. Ratepayers were told the upgrades would raise their monthly electric bills by an average of $31.

Kentucky Power said Wednesday it would instead draw about 780 megawatts of power for the region from the Mitchell Generating Station in Moundsville, W.Va. Kentucky Power says the new plan would cost customers about $6 more a month.

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