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Indiana's Rockport plant switching almost entirely to Powder River Basin coal

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Indiana's Rockport plant switching almost entirely to Powder River Basin coal

Indiana Michigan Power Co. is in the process of switching its 2,600-MW Rockport power plant in Spencer County, Ind., almost entirely to Powder River Basin coal, a spokesman for the American Electric Power Co. Inc. subsidiary said Feb. 27.

Currently, the twin 1,300-MW unit generating station burns a blend of Central Appalachian and PRB coal, Tracy Warren said in an interview with S&P Global Platts. Rockport burns in excess of 7 million tons of coal annually.

Warren confirmed most of the written testimony last week of Gregory Guerrettaz, a financial consultant for the Indiana Office of Utility Consumer Counsel, who told state regulators that I&M "will begin to use Western coal almost exclusively at Rockport to minimize cost."

To his knowledge, Warren said, the reason for the coal shift is "mostly operational."

Even though Rockport will burn mostly Western coal, he said the company will "strategically blend it with Eastern coal based on load, as well as boiler constraints."

Rockport is a relatively young facility, with its two units going into commercial operation in 1984 and 1989. Still, it has been the subject of potential retirement rumors, egged on by environmentalists who argue the plant should be shut as soon as possible to save customers money.

According to Warren, I&M has no plans to close Rockport, although a unit 2 lease is due to expire in December 2022.

In its recent rate case, the utility sought to advance unit 2's depreciation schedule from 2044 to 2028. Warren said, however, that 2028 "isn't necessarily when we will retire it."

Bob Matyi is a reporter for S&P Global Platts, which, like S&P Global Market Intelligence, is owned by S&P Global Inc.