COLUMBUS, Ohio, Feb. 9, 2021 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has reached an agreement to sell its 48-megawatt (MW) hydroelectric Racine Plant in Racine, Ohio, owned by AEP Generation Resources, the company's competitive generation affiliate, to Eagle Creek Renewable Energy.
"The sale of Racine Plant is part of our ongoing strategic evaluation of our generating assets as we focus on our regulated business operations and invest in the infrastructure and energy innovations that bring value to our customers," said Nicholas K. Akins, AEP chairman, president and chief executive officer. "We continue to add new emission-free energy both in our regulated states and through contracted renewable projects that fit with our overall strategy and portfolio."
The sale of Racine is expected to close in the second quarter of 2021 and is subject to approval by the Federal Energy Regulatory Commission. Due to the competitive nature of the transaction, the sale price will not be disclosed.
AEP Generation Resources has retired or sold all of its capacity, except for the 595-MW Cardinal Plant Unit 1, which is set to retire in 2030, consistent with AEP's move to exit the competitive generation business.
Scotiabank is acting as AEP's financial advisor, and Porter Wright is serving as legal counsel for the sale process.
Eagle Creek Renewable Energy owns and operates 86 hydroelectric facilities in the United States.
American Electric Power, based in Columbus, Ohio, is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions to our customers. AEP's approximately 16,800 employees operate and maintain the nation's largest electricity transmission system and more than 223,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.5 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 30,000 megawatts of diverse generating capacity, including more than 5,300 megawatts of renewable energy. 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, AEP Energy Partners, AEP OnSite Partners, and AEP Renewables, which provide innovative competitive energy solutions nationwide. For more information, visit aep.com.
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SOURCE American Electric Power