AEP / Coal / Energy

AEP leaning toward selling Ohio power plants

Utility concerned about financial viability of unregulated plants

American Electric Power’s Cardinal plant.

American Electric Power’s Cardinal plant.

COLUMBUS — “American Electric Power appears increasingly likely to sell its Ohio power plants, citing a regulatory structure that the company’s chief executive says is not conducive to investment.

…Columbus-based AEP has asked the Public Utilities Commission of Ohio to provide a new mechanism to reduce the financial risks of operating four coal-fired power plants. The proposal, which is awaiting a decision, would guarantee profit at the plants while also placing an upper limit on that profit. At first, this would lead to an additional charge of about $2 per month for a typical household.

At the same time, AEP said in January that it has hired an investment bank to explore options for a sale of its 10 unregulated power plants, most of which are located in Ohio. This includes the four that are part of the proposal with the PUCO.”

— Dan Gearino, Columbus Dispatch

link to article

Tags: ,