Attorney General Kelly A. Ayotte and Thomas S. Burack, Commissioner of the New Hampshire Department of Environmental Services (“DES”), announced today that New Hampshire has joined with the federal government, states and environmental groups in recommending court approval of a settlement of Clean Air Act violations that will result in the largest emissions reductions in history with one of the nation’s largest utilities, American Electric Power, Inc. (“AEP”). The settlement, if approved by the court, would result in massive reductions of air pollution from Midwestern coal-fired power plants that have degraded New Hampshire’s air quality.

The settlement culminates seven years of litigation with AEP over alleged violations of “New Source Review” or “NSR” provisions of the federal Clean Air Act. The NSR provisions require power plants to upgrade pollution controls when they make any major changes that would increase air emissions. The governments and environmental groups filed suit against AEP in Ohio, alleging that AEP had constructed life extension projects at many of its coal-fired plants without controlling increased pollution levels, resulting in acid rain and smog in downwind areas. New Hampshire, along with seven other northeastern states, the U.S. Environmental Protection Agency and several environmental groups have been engaged in intensive settlement discussions while awaiting a court decision on liability for the alleged violations.

The proposed settlement, which was filed in federal court today, would require AEP to eliminate hundreds of thousands of tons of air pollution from 16 coal-fired power plants located in Indiana, Kentucky, Ohio, Virginia and West Virginia. It would also require AEP to pay a $15 million civil penalty to the federal government and to fund $60 million worth of environmental projects. Pollution control equipment alone could cost AEP as much as $4.6 billion dollars.

Attorney General Ayotte commented: “This settlement represents a huge step towards reducing the impact that Midwestern coal-fired power plants have on New Hampshire’s air quality. Enforcing clean air laws is critical to ensuring that our citizens’ health and the quality of our precious natural resources are not compromised by upwind polluters.”

DES Commissioner Burack added: “The benefits from this settlement will continue for years to come as we move forward to address state and regional air quality problems. DES will continue to work with its state and federal partners to ensure that this progress continues.”