* AEP to reduce costs by running units part-time

 * Units to remain available for peak summer/winter months

 * Units did not run much over past few years

 NEW YORK, May 27 (Reuters) - American Electric Power Co Inc
(AEP.N) planned to run 10 small coal-fired power units on a
part-time basis starting in June as the weak economy reduced
demand and low natural gas prices have made the use of some
coal units less profitable, a company spokesman said Thursday.

 The spokesman, Pat Hemlepp, said AEP, of Columbus, Ohio,
would place the coal units, which are older, smaller and less
efficient, in "extended start-up" status beginning June 1 and
redeploy some employees.

 With the federal government looking to impose a cost on
carbon emissions to combat global warming and environmental
regulations becoming increasingly stringent year over year,
several power companies, including Exelon Corp (EXC.N) and
Progress Energy Inc (PGN.N), have already announced plans to
retire some older, less efficient coal plants.

 Hemlepp said this was part of AEP's effort to reduce costs
after the recession reduced consumer power demand and a decline
in natural gas prices made gas plants less expensive than the
older coal units in the company's Eastern footprint.

 In April, AEP said it would launch a companywide buyout
program to cut its workforce by 1,000 to 2,000 jobs, or 5
percent to 10 percent, as the poor economy continued to squeeze
power demand. [ID:nN15255252]

 Together the units, which Hemlepp said have not run much
over the past few years, can generate close to 2,000 megawatts
- only a small sliver of AEP's 38,000 MW generating capacity.
One megawatt powers about 1,000 homes.

 AEP plans to make the old coal units available during the
peak summer months of July and August when consumers crank up
their air conditioners and January when they turn up their
heating systems.

 During the other months, Hemlepp said the units would be
available to run with about four days notice.

 The units include:
Unit                 Size      Year    Town/County       State
Picway 5             100 MW    1955    Pickaway County    OH
Muskingum River 4    215 MW    1958    Beverly            OH
Clinch River 3       235 MW    1961    Carbo              VA
Tanners Creek 1      145 MW    1951    Lawrenceburg       IN
Tanners Creek 2      145 MW    1952    Lawrenceburg       IN
Glen Lyn 5            95 MW    1944    Glen Lyn           VA
Glen Lyn 6           240 MW    1957    Glen Lyn           VA
Philip Sporn 3       150 MW    1951    New Haven          WV
Philip Sporn 4       150 MW    1952    New Haven          WV
Philip Sporn 5       450 MW    1960    New Haven          WV

  Hemlepp noted that some of the plants have larger, more
efficient units that will remain available for service all
year.
 (Reporting by Scott DiSavino)