Shaw Awarded EPC Contract for New 600 MW Ultra-Supercritical Power Plant

The Shaw Group has been awarded an engineering, procurement and construction (EPC) contract by Southwestern Electric Power Company (SWEPCO), a unit of American Electric Power (AEP), to build a new 600 MW electric generating plant in Hempstead County, Arkansas. SWEPCO is seeking the necessary regulatory approvals to build the plant from various Arkansas, Texas and Louisiana authorities.

The John W. Turk, Jr. - Unit 1 facility will use an ultra-supercritical advanced pulverized clean coal combustion technology. By increasing steam pressure and temperatures, the facility will require less fuel per megawatt hour, resulting in increased efficiency and reduced emissions. The new plant is scheduled to be completed in mid-2011 at a total cost of approximately $1.3 billion. Shaw's EPC contract is valued at approximately $700 million.

J.M. Bernhard, Jr., Chairman, President and Chief Executive Officer of Shaw, said, "We are very pleased to have been selected by AEP to design, engineer and construct this highly efficient, environmentally sound facility. We are proud to combine Shaw's leadership in fossil power with our expertise in high alloy piping materials which are designed to withstand the high steam temperatures and pressures at the new facility. AEP is a leader in the use of this technology and we look forward to successfully delivering this generating plant to this valued client."

SWEPCO serves over 464,000 customers in three states: 112,000 in western Arkansas, 176,000 in Northwest Louisiana, and 176,000 in East and North Texas.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern states and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east and north Texas). AEP's headquarters are in Columbus, Ohio.

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Posted 07/05/07

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