American Electric Power (AEP) announced that its Indiana Michigan Power’s 1,030 megawatt (MW) Cook Nuclear Plant Unit 1 was brought back on-line after a planned routine maintenance on the unit’s main generator. The company has received licenses from the Nuclear Regulatory Commission (NRC) to operate the unit till 2034.
The planned maintenance outage required the power plant to go offline for 5 days and 20 hours. Such outages, planned and intentional, at nuclear power plants are essential as these facilities involve special risks, potential liabilities and specific regulatory and safety requirements. Timely maintenance of nuclear facilities lower potential risks of accidents.
In September 2008, the Cook Nuclear Plant Unit 1 was shut down due to turbine vibrations, caused by blade failure, which resulted in significant turbine damage and a small fire on the electric generator. The turbine rotors that caused the vibration were repaired and reinstalled as extensive lead time is required to manufacture and install new turbine rotors.
Following the repair work, Unit 1 began generating power from December 2009 with a smaller generating capacity. The company has a planned outage lined up during fall 2011 for replacing the repaired turbine rotors and other equipments.
Even though American Electric Power generates the majority of electricity from fossil fuel like coal and natural gas, it is also conscientious about the safety of its nuclear power plants. We believe the safety and proper maintenance of the nuclear power plants have gained even more importance and emphasis globally after the Japan nuclear crisis in the wake of the earthquake and tsunami there.
Indiana Michigan Power is a unit of American Electric Power. American Electric Power currently retains a Zacks #3 Rank (short-term Hold rating). We maintain our long-tern Neutral rating on the stock. The company’s operating margins fared better than its peers CenterPoint Energy Inc. (CNP) and Duke Energy Corporation (DUK) in the trailing twelve months.
Based in Columbus, Ohio, American Electric Power is engaged in the generation, transmission, and distribution of electric power. The company generates electricity using coal and lignite, natural gas, nuclear, and hydroelectric energy.
AMER ELEC PWR (AEP): Free Stock Analysis Report
CENTERPOINT EGY (CNP): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis Report
Zacks Investment Research
