COLUMBUS, Ohio, Feb. 13,
2023 /PRNewswire/ -- American Electric Power (Nasdaq:
AEP) and Liberty, an indirect subsidiary of Algonquin Power &
Utilities Corp., today filed a new application with the Federal
Energy Regulatory Commission (FERC) under section 203 of the
Federal Power Act seeking approval of the sale of AEP's
Kentucky operations to Liberty.
The companies are asking FERC for expedited review of the
application as they work to close the transaction by April 26, 2023. In December 2022, FERC denied approval of the sale
without prejudice and outlined the additional information about
customer protections needed to obtain approval.
"AEP and Liberty are committed to the sale and are requesting
FERC's accelerated review of the application so customers in
eastern Kentucky can begin
benefiting from the transaction," said Julie Sloat, AEP president and chief executive
officer. "In addition to the Kentucky sale, AEP remains focused on
advancing the strategic initiatives we have outlined, including the
sale of our competitive renewables portfolio and the strategic
review of our retail business. These actions are consistent with
the equity financing plan, operating earnings guidance and
long-term growth rate of 6-7% announced at our analyst day last
October."
The new 203 application addresses the concerns raised in FERC's
December 2022 order and demonstrates
that there will be no adverse impact on FERC-jurisdictional
customer rates as a result of the transaction. The new application
outlines several financial measures Liberty will take for the next
five years which include: maintaining the return on equity;
maintaining the current cost cap on equity; financing future credit
investment at the current credit rating; and capping certain
operating and administrative costs.
FERC approval will enable benefits to retail customers in
eastern Kentucky and boost
economic growth in the region. This includes the following benefits
that were part of the Kentucky Public Service Commission's order
approving the transaction:
- $40 million fund to help offset
volatile fuel rates through 2023
- A "rate holiday" on the collection of the Big Sandy
decommissioning rider for three years
- More than 100 new jobs and expanded local management and
customer service, including a new call center in the Kentucky service territory.
Finalization of the transaction is subject to FERC approval and
federal clearance pursuant to the Hart-Scott-Rodino Antitrust
Improvements Act of 1976.
American Electric Power, based in Columbus, Ohio, is powering a cleaner,
brighter energy future for its customers and communities. AEP's
approximately 17,000 employees operate and maintain the nation's
largest electricity transmission system and more than 224,000 miles
of distribution lines to safely deliver reliable and affordable
power to 5.5 million regulated customers in 11 states. AEP also is
one of the nation's largest electricity producers with
approximately 31,000 megawatts of diverse generating capacity,
including more than 6,900 megawatts of renewable energy. The
company's plans include growing its renewable generation portfolio
to approximately 50% of total capacity by 2032. AEP is on track to
reach an 80% reduction in carbon dioxide emissions from 2005 levels
by 2030 and has committed to achieving net zero by 2045. AEP is
recognized consistently for its focus on sustainability, community
engagement, and diversity, equity and inclusion. AEP's family of
companies includes utilities AEP Ohio, AEP Texas, Appalachian Power
(in Virginia and West Virginia), AEP Appalachian Power (in
Tennessee), Indiana Michigan
Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. For more
information, visit aep.com.
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SOURCE American Electric Power