Home Energy system AEP signs an agreement to sell its operations in Kentucky

AEP signs an agreement to sell its operations in Kentucky

0

Posted on October 04, 2022 by Dave Kovaleski

© Shutterstock

American Electric Power has signed an amended agreement to sell its Kentucky operations to Liberty.

Liberty will acquire AEP’s Kentucky operations by purchasing all of the shares of Kentucky Power and AEP Kentucky Transco for a discounted price of $2.646 billion under the amended agreement. AEP expects to raise approximately $1.2 billion in cash, net of taxes and fees.

“I want to thank the Kentucky employees for their continued focus on providing safe and reliable power to customers. This sale will provide significant benefits to Eastern Kentucky customers to help offset fuel price volatility and support economic growth. It will also support AEP’s ability to invest in projects across our regulated businesses that will transition to a cleaner, more reliable and resilient energy system,” said AEP Chairman and CEO Nicholas Akins. .

The sale is expected to close in January 2023 following approval of the transaction by the Federal Energy Regulatory Commission (FERC).

“The updated timeline for the closing of the sale will not impact our projected equity requirements or the operating profit guidance we have provided,” the President and CEO said. from AEP, Julie Sloat. “We look forward to receiving FERC’s approval and finalizing the transaction to allow customers to begin enjoying the benefits.”

Liberty, the regulated utility company of Algonquin Power & Utilities Corp., previously announced that David Swain will lead Kentucky operations when the transaction closes.

Additionally, AEP announced that Brett Mattison, president and chief operating officer (COO) of Kentucky Power, has been named president and COO of Southwestern Electric Power Company, effective January 1. Mattison succeeds Malcolm Smoak, who is retiring.