Press release
AEP and Liberty File New FERC 203 Application for Approval of Kentucky Sale
COLUMBUS, Ohio, Feb. 13, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) and Liberty, an indirect subsidiary of Algonquin Power & Utilities Corp.,
About this update from American Electric Power Company, Inc.
[{"type":"text","content":"COLUMBUS, Ohio, Feb. 13, 2023 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) and Liberty, an indirect subsidiary of Algonquin Power & Utilities Corp., today filed a new application with the Federal Energy Regulatory Commission (FERC) under section 203 of the Federal Power Act seeking approval of the sale of AEP's Kentucky operations to Liberty. The companies are asking FERC for expedited review of the application as they work to close the transaction by April 26, 2023. In December 2022, FERC denied approval of the sale without prejudice and outlined the additional information about customer protections needed to obtain approval.\n\"AEP and Liberty are committed to the sale and are requesting FERC's accelerated review of the application so customers in eastern Kentucky can begin benefiting from the transaction,\" said Julie Sloat, AEP president and chief executive officer. \"In addition to the Kentucky sale, AEP remains focused on advancing the strategic initiatives we have outlined, including the sale of our competitive renewables portfolio and the strategic review of our retail business. These actions are consistent with the equity financing plan, operating earnings guidance and long-term growth rate of 6-7% announced at our analyst day last October.\"\nThe new 203 application addresses the concerns raised in FERC's December 2022 order and demonstrates that there will be no adverse impact on FERC-jurisdictional customer rates as a result of the transaction. The new application outlines several financial measures Liberty will take for the next five years which include: maintaining the return on equity; maintaining the current cost cap on equity; financing future credit investment at the current credit rating; and capping certain operating and administrative costs. \nFERC approval will enable benefits to retail customers in eastern Kentucky and boost economic growth in the region. This includes the following benefits that were part of the Kentucky Public Service Commission's order approving the transaction:\n$40 million fund to help offset volatile fuel rates through 2023A \"rate holiday\" on the collection of the Big Sandy decommissioning rider for three yearsMore than 100 new jobs and expanded local management and customer service, including a new call center in the Kentucky service territory.Finalization of the transact...