American Electric Power has entered into an agreement to sell its Kentucky operations, which include Kentucky Power and AEP Kentucky Transco to Liberty Power. The $2.8 billion dollar transaction is expected to close in the second quarter of 2022, pending regulatory approvals.
Upon an initial review of such a transition, Mountain Association Commercial Energy Specialist Josh Bills said the move appears favorable for eastern Kentucky users. “We’re optimistic just in terms of a company that looks like they’re doing a wider array of generation portfolio than we have with Kentucky Power,” said Bills.
Bills said an executive with Liberty’s parent company is quoted as saying the transaction will present an opportunity to replace over one gigawatt of Kentucky Power’s rate-based fossil fuel generation with renewable energy. Kentucky Power provides service to about 165,000 customers in all or part of 20 eastern Kentucky counties. The utility went on line in 1919 in the city of Ashland.
