AEP COMPLETES SALE OF CARDINAL PLANT UNIT 1

Rhea-AI Summary

American Electric Power (Nasdaq: AEP) has finalized the sale of the 595-megawatt Cardinal Plant Unit 1 in Brilliant, Ohio, to Buckeye Power, completing its exit from competitive generation ownership in Ohio. The deal, approved by the Federal Energy Regulatory Commission on May 19, includes a power purchase agreement allowing AEP Generation Resources to buy 100% of Unit 1's output through 2028. This move emphasizes AEP's focus on regulated operations and future renewable energy growth, with plans to increase renewable generation capacity to 50% by 2030.

Positive

• Completion of sale reinforces AEP's focus on regulated business.
• AEP plans to grow renewable generation to 50% of capacity by 2030.
• Commitment to reduce carbon emissions by 80% from 2000 levels by 2030.

Negative

• None.

COLUMBUS, Ohio, Aug. 2, 2022 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has completed the sale of the 595-megawatt (MW) Cardinal Plant Unit 1 in Brilliant, Ohio, from AEP Generation Resources, the company's competitive generation affiliate, to Buckeye Power.

In March, AEP reached an agreement to sell Cardinal Plant Unit 1 and the company's ownership stake in Cardinal Operating Company to Buckeye Power. The Federal Energy Regulatory Commission approved the sale on May 19. AEP Generation Resources will purchase 100% of Unit 1's output through a power purchase agreement through 2028. Cardinal Operating Company currently operates Cardinal Plant, and Buckeye already owns the other two units at the plant. Due to the competitive nature of the transaction, the sale price will not be disclosed.

The sale of Cardinal Plant Unit 1 completes AEP Generation Resources' exit from competitive generation ownership in Ohio and reinforces AEP's focus on its regulated business operations and infrastructure.

American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 16,700 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 7,100 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2030. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2000 levels by 2030 and has committed to achieving net zero by 2050. 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.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/aep-completes-sale-of-cardinal-plant-unit-1-301598285.html

SOURCE American Electric Power

FAQ

What was the Cardinal Plant Unit 1 sale date for AEP?

The sale of Cardinal Plant Unit 1 was completed on August 2, 2022.

Who purchased Cardinal Plant Unit 1 from AEP?

Buckeye Power purchased the 595-megawatt Cardinal Plant Unit 1 from American Electric Power.

What is the significance of AEP's sale of Cardinal Plant Unit 1?

The sale completes AEP's exit from competitive generation ownership in Ohio and reinforces its focus on regulated operations.

What is AEP's plan for renewable energy by 2030?

AEP plans to increase its renewable generation portfolio to approximately 50% of total capacity by 2030.