AEP Seeking Grants To Assist With Advanced Nuclear Site Exploration in Indiana and Virginia
Columbus, OH, Jan. 17, 2025 – American Electric Power (Nasdaq: AEP) is seeking grants from the U.S. Department of Energy (USDOE) to support the Early Site Permit (ESP) process for two potential Small Modular Reactor (SMR) sites. Through its Indiana Michigan Power (I&M) operating company, AEP is announcing that property at the Rockport Plant in Spencer County, Indiana, has been identified as a potential SMR site. Previously AEP, through its Appalachian Power operating company, had announced it was beginning the ESP process for company-owned Joshua Falls property in Campbell County, Virginia.
Through a grant funding partnership with the Tennessee Valley Authority (TVA) and GE Hitachi Nuclear Energy (GEH), I&M is seeking $50 million to begin the early stages of SMR development at the Rockport Plant site. If awarded funds, I&M will conduct ESP activities, as well as a Preliminary Safety Analysis Report, which is required for a potential future Construction Permit, at the site utilizing the GEH BWRX-300 technology. This includes gathering public input from community members, collecting detailed site information, and deployment planning for the use of a GEH BWRX-300 at the site. This SMR unit is capable of generating 300 megawatts (MW) of electricity.
“AEP is proud to be an industry leader in bringing the next generation of nuclear power to our customers,” said Bill Fehrman, AEP president and chief executive officer. “The demand for power is growing at a pace not seen in decades. Not only is AEP working to bring solutions tailored to the current power needs of our states, such as new natural gas and fuel cells, we are also excited about the potential that SMRs have to meet the growing needs of the future.”
SMRs offer tremendous potential to provide safe, reliable and clean energy 24 hours a day, 365 days a year. The relatively small footprint allows SMRs to be constructed in areas that were not previously feasible for nuclear energy generation. SMR sites can also be scaled to match the energy needs of the state. A single SMR unit can generate up to 500 MW of clean energy, depending on the design of the unit.
Both grant applications were submitted under the USDOE’s Generation III+ Small Modular Reactor Program. The program is offering up to $900 million in grants.
I&M has applied as a subrecipient under TVA’s application, with GEH as the reactor technology provider. I&M will host a public open house mid-year. Local and state officials have expressed their support for the project. Last year, Spencer County officials approved an ordinance supporting new generation at the Rockport Plant site, including the use of SMRs.
“We are excited that Indiana Michigan Power is exploring SMR technology and is looking at its Rockport generation site in Spencer County as its home,” said Indiana State Representative Steve Bartels and Indiana State Senator Daryl Schmitt in a joint statement. “An SMR here would mean hundreds of great jobs for the area, provide local fiscal support to enhance the quality of life, local services, and create educational opportunities for our young people to help them build a career in energy production.”
Additionally, in November 2024, the Indiana Office of Energy Development issued a siting report performed by Purdue University which identifies Rockport as a suitable site.
“The flexibility of our generation portfolio has allowed us to provide reliable, affordable power to our customers,” said Steve Baker, I&M president and chief operating officer. “Our fleet includes reliable baseload generation from coal and the Cook Nuclear Plant, as well as renewable energy from wind and solar. We’re excited that the next generation of nuclear technology could be a part of I&M’s future.”
I&M has safely operated Cook Nuclear Plant in Bridgman, Michigan since 1975. The facility has reliably powered I&M customers since then and the company is seeking to extend the operating license for Cook Plant through 2054 for unit 1 and 2057 for unit 2. Additionally, the company is looking at how to best meet the near-term energy needs of customers.
Appalachian Power has applied under a separate grant category. No technology provider has been identified at this time. Appalachian Power continues to evaluate technology providers to determine what is commercially viable at the site and aligns with Virginia’s energy needs.
In November 2024, Appalachian Power announced that it was beginning exploration to see if the Joshua Falls site was suitable for an SMR. Today, Appalachian Power submitted a grant proposal requesting $35 million to offset the costs of the work necessary for the ESP.
In Virginia, Appalachian Power held a public meeting in December 2024, attended by more than 100 individuals interested in learning more about the project. Appalachian Power is continuing to keep the community informed as the project progresses. The company will submit an application to the Virginia State Corporation Commission this spring requesting approval pursuant to Virginia Code § 56-585.1:15, which supports the recovery of SMR development costs.
“Appalachian Power has heard tremendous support for our SMR proposal, and we’re listening to, and working with, those who have concerns,” said Aaron Walker, Appalachian Power president and chief operating officer. “We are at the beginning of a long and exciting journey. Our state and local leaders understand how SMRs can benefit our customers, and we are grateful for their support.”
AEP’s commercial use of an SMR is estimated to be at least a decade away. Permitting and regulatory processes are in place to ensure safety and reliability of the facilities. SMRs are a promising future energy resource, but I&M and Appalachian Power are working with state regulators, stakeholders, and leaders to meet quickly-growing energy needs and energy policy goals. Several other SMR projects in the US and Canada are currently engaged in the regulatory process.
Customers can learn more about the Appalachian Power’s SMR at: appalachianpower.com/smr
More information about SMRs is available at indianamichiganpower.com/smr, and details about the proposal for Rockport will be added soon.
About AEP
Our team at American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We are investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of our communities. Our nearly 16,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 29,000 megawatts of diverse generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.
ROANOKE, Va., Nov. 14, 2024 – In a major step toward securing Virginia’s reliable energy future, Appalachian Power announces plans to bring Small Modular Reactors (SMRs) to Virginia. Appalachian Power representatives identified a potential site for an SMR project on company-owned Joshua Falls property in Campbell County, Virginia, and plan to begin the Early Site Permit Application process. This site provides access to existing electrical infrastructure that is necessary for a generation project. The site includes a 765 kilovolt substation and nearby roadways can support moving the necessary equipment onsite.
This is a significant milestone in the company’s efforts to provide reliable and clean energy to its customers. SMR technology offers tremendous potential to provide safe, reliable and clean energy 24 hours a day, 365 days a year. The relatively small footprint allows SMRs to be constructed in areas that were not previously feasible for nuclear energy generation. SMR sites can also be scaled to match the energy needs of the state. A single SMR can generate up to 500 megawatts (MW) of clean energy.
“SMR technology is a key component to providing perfect power to our customers. Appalachian Power and AEP are committed to working with our states to develop energy solutions that align with state policy goals and reliably serve our customers,” said Bill Fehrman, AEP president and chief executive officer.
"Advanced nuclear power is at the heart of Virginia's All-American, All-of-the Above Energy Plan; a plan that prioritizes abundant, reliable, affordable, and increasingly clean power to fuel our thriving and growing economy. I am grateful that Appalachian Power is taking this next step to support Virginia's nuclear future." said Governor Glenn Youngkin.
“Appalachian Power is committed to generating clean, always-on power to meet Virginia's future demand. We are grateful to the Virginia General Assembly and Governor Youngkin for embracing SMR technology – this announcement would not have been possible without theirforward-thinking support,” said Aaron Walker, Appalachian Power president and chief operating officer.
The company plans to file an application with the Virginia State Corporation Commission in spring 2025. In addition, Appalachian Power plans to apply for part of the U.S. Department of Energy’s $900 million grant program to accelerate the deployment of SMRs and help reduce customer costs.
Appalachian Power will work closely with the U.S. Nuclear Regulatory Commission, state and local agencies and other stakeholders to educate the community about the benefits of SMRs while gathering feedback.
A community open house will be hosted on Thursday, December 5, 2024, from 5 - 7 p.m. at the Lynchburg Regional Business Alliance where experts and company representatives will be available to answer questions about the project. There is no formal presentation, so attendees may come and go any time during the 2-hour event to talk to project representatives and learn about the future of SMRs.
Residents who cannot attend the open house or want to learn more in advance of the public meeting can visit the project website at AppalachianPower.com/SMR.
Appalachian Power has 1.1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is part of American Electric Power, a team committed to improving our customers' lives with reliable, affordable power. AEP is investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of our communities. Our nearly 16,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 29,000 megawatts of diverse generating capacity, including 2.3 gigawatts of nuclear. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement.
MEDIA CONTACT:
George Porter
540-985-2968
gaporter@aep.com