COSHOCTON — After devaluation of the plant and plans to take two units offline were announced in recent years, the American Electric Power plant just outside Conesville is slated to close by May 31, 2020.

Melissa McHenry, a spokesperson for AEP, confirmed that employees were told on Friday of the plans to shutter the 1,590-megawatt facility. Units 5 and 6, originally set to go offline in 2022, will probably be closing in May 2019 with Unit 4 remaining operational through May 2020, she said in an email to the Tribune.

McHenry said AEP would be contacting local leaders to discuss the plant's closure and impact. She said some workers would continue on elsewhere in the company and those who don't would receive a severance package.

"AEP greatly values the contributions of the 165 employees who have continued to operate Conesville safely and efficiently while the future of the plant has been uncertain," McHenry said in the email. "We appreciate all they have done and continue to do for the company and for the Coshocton County community."

The decision to close the plant was based on costs to keep the plant operating and the outcomes of recent competitive generation auctions. The plant did not clear the PJM Energy Market capacity auction for 2021 to 2022 and only partially cleared the auction for 2020 to 2021. The auctions are for the sale and purchase of energy to meet consumer needs by energy providers.

AEP has been exiting the competitive generation business in Ohio for several years, McHenry stated, with the long-term focus being on regulated businesses and investment in infrastructure and energy innovations. A buyer was sought for the Conesville plant for several years, she said, but was not found.

The company will be working with the appropriate state and federal agencies who specialize in decommissioning brownfield sites to ensure proper closure and compliance with all regulatory requirements.

"AEP continues to operate other facilities in the area and looks forward to an ongoing positive relationship with Conesville and surrounding communities," McHenry said in the email.

The coal-fired plant, which opened in 1957, had about 600 employees at its height. It has always been active in the community, such as hosting an annual Earth Day for local elementary school kids to learn about the environment for the past 18 years.

Coshocton native Ryan Forbes was named manager of the plant in January 2017. In a story with the Tribune for the plant's 60th anniversary, Forbes said most plants like Conesville have an average lifespan of 40 years, so it had already beaten the odds by 20 years.

In October 2017, the plant was devalued by the Ohio Department of Taxation, going from $72.2 million to $34.7 million due to coal-fired plants being not as valuable in the energy market as natural gas facilities. This resulted in close to $2 million in revenue lost to local entities.

The hardest hit dollars wise was River View Local Schools at $1.18 million annually and the biggest percentage drop was to Franklin Township which lost more than half of its annual budget at $87,193. Whether the plant will be devalued further this year is yet to be seen or how the plant closure in two years will affect those receiving tax funding.

llhayhur@coshoctontribune.com

@llhayhurst

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