American Electric Power (NYSE: AEP) won approval from the Federal Energy Regulatory Commission (FERC) to separate its Ohio generating assets from its Ohio distribution and transmission operations and transfer these assets to a competitive generation company and regulated affiliates.
AEP is awaiting FERC approval of additional transactional agreements between AEP affiliates.
"With these approvals, we reached another milestone in the transition to full electricity competition in Ohio. The FERC decisions allow us to move forward with the ownership transfer of our Ohio generation-related assets into a separate unregulated generation company and to other AEP operating companies," said Nicholas K. Akins, AEP president and CEO. "We anticipate decisions from FERC on our other related filings soon and expect to fully separate our Ohio generation from our Ohio utility operations at the end of this year.
"We will continue to work with regulators in Kentucky, Virginia and West Virginia to seek the additional approvals necessary to transfer ownership of the Mitchell Plant and the AEP Ohio-owned share of the Amos Plant to Appalachian Power and Kentucky Power to help satisfy their existing and long-term generation requirements," Akins said.
The FERC's April 29 decision approved the transfer of AEP Ohio-owned generation to a new unit — AEP Generation Resources Inc. FERC also approved further transfer of AEP Ohio's two-thirds ownership (867 MW) in John E. Amos Plant Unit 3 (1,300 MW) and ownership of 800 MW of the 1,600-MW generating capacity of Mitchell Plant to Appalachian Power as well as ownership transfer of the remaining 800 MW of Mitchell Plant to Kentucky Power.
Additionally, the FERC approved merging AEP's Wheeling Power utility into Appalachian Power.
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