American Electric Power reached a $75 million settlement agreement yesterday that could decrease pollution in Ohio and several other states, according to an AEP news release.

The lawsuit was filed by the Environmental Protection Agency, eight Northeastern states and several other organizations because of possible violations of the Clean Air Act.

The complaint filed states that AEP made changes to its coal-powered plants without applying for the proper permits and instituting environmental controls, according to the release.

The AEP admits no wrongdoing, and all claims were dropped, said spokeswoman Melissa McHenry.

The settlement includes yearly limits on sulfur dioxide and nitrogen oxides emissions for 16 plants in Ohio, West Virginia, Virginia, Indiana and Kentucky. The reduction of sulfur dioxide will decrease acid rain while the decrease in nitrogen oxides could prevent further ozone depletion.

The settlement also calls for funding for environmental projects and retrofits — new technology added onto older plants — on a plant in Rockport, Ind. and one in West Virginia, said McHenry.

“It (the limits on emissions) will improve air quality in the entire region (of Southeastern Ohio),” McHenry said.

In total, the AEP will pay $75 million for the settlement, not including improvements on plants. The AEP agreed to this amount as it was deemed a reasonable settlement after eight years of litigation, McHenry said.

Rates are not expected to rise further, but it is unclear whether that will change in 2009, McHenry said.

AEP provides 93 percent of the electricity Ohio University uses and also makes up most of Athens County’s electrical supply.