AEP COMPLETES SALE OF RACINE HYDRO PLANT

Rhea-AI Summary

American Electric Power (AEP) has successfully completed the sale of its 48-MW Racine hydroelectric facility in Racine, Ohio, to Eagle Creek Renewable Energy. The Federal Energy Regulatory Commission approved this transaction on December 17, 2021. This sale aligns with AEP's strategy to focus more on regulated business operations, with AEP Generation Resources now retaining only the Cardinal Plant's 595-MW Unit 1, which is set for retirement in 2028. AEP aims to grow its renewable energy portfolio to about 50% of total capacity by 2030 and is committed to achieving net zero emissions by 2050.

Positive

• AEP continues to focus on regulated business operations by selling non-core assets.
• The sale aligns with AEP's strategy to enhance its renewable energy portfolio.

Negative

• None.

COLUMBUS, Ohio, Dec. 30, 2021 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) today completed the sale of Racine Plant, a 48-megawatt (MW) hydroelectric facility in Racine, Ohio, from AEP Generation Resources, the company's competitive generation affiliate, to Eagle Creek Renewable Energy.

AEP announced Feb. 9, 2021, that it had reached an agreement to sell the plant. The Federal Energy Regulatory Commission approved the transfer on Dec. 17. Due to the competitive nature of the transaction, the sale price will not be disclosed.

The sale of Racine Hydro furthers AEP's ongoing focus on its regulated business operations, infrastructure and energy innovations. With the completion of this transaction, AEP Generation Resources' only remaining competitive facility is Cardinal Plant's 595-MW Unit 1, which is scheduled for retirement in 2028. 

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 5,900 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.

 

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SOURCE American Electric Power

FAQ

What is the recent sale completed by AEP?

AEP has completed the sale of its Racine hydroelectric facility to Eagle Creek Renewable Energy.

What capacity is the Racine hydroelectric facility?

The Racine hydroelectric facility has a capacity of 48 megawatts (MW).

When was the sale of the Racine Plant approved?

The sale was approved by the Federal Energy Regulatory Commission on December 17, 2021.

How does this sale impact AEP's business strategy?

The sale supports AEP's focus on regulated operations and enhancing its renewable energy assets.

What is AEP's goal for its renewable energy generation by 2030?

AEP aims to grow its renewable generation portfolio to approximately 50% of total capacity by 2030.