American Electric Power (NYSE: AEP) has received the final approvals from the Federal Energy Regulatory Commission to separate its AEP Ohio-owned generation assets from its Ohio distribution and transmission operations. The generation will be transferred to AEP’s competitive generation company, AEP Generation Resources Inc., and regulated affiliates Appalachian Power and Kentucky Power.
Around 11,200 MW of AEP Ohio-owned power generation will be transferred to AEP Generation Resources, according to the company. Appalachian Power will take ownership of AEP Ohio’s two-thirds ownership of John E. Amos Plant Unit 3, which equals 867 MW of capacity, and Kentucky Power will take ownership of 50 percent of Mitchell Plant, which equals 800 MW of capacity.
After transfers and expected retirements through 2015, AEP Generation Resources is expected to own around 8,700 MW of power generation capacity.