American Electric Power and Dynegy on Tuesday completed the transfer of their stakes in a pair of Ohio coal-fired plants that the two companies own in common.
The transfer is part of AEP’s strategic review of its merchant assets.
AEP sold its 330-MW (25.4%) share of the Zimmer plant and will assume Dynegy’s 312-MW (40%) interest in the Conesville plant. As part of the deal, AEP returned a $58 million letter of credit to Dynegy.
Columbus, Ohio-based AEP now owns 92% of Conesville’s four units, with Dayton Power & Light holding the remaining 129 MW of Unit 4.
AEP’s other competitive assets in Ohio include a 595-MW unit of the Cardinal plant near Brilliant, Ohio; 603 MW of the Stuart plant near Aberdeen, Ohio; and a 48-MW hydro plant near Racine, Ohio.
The Stuart plant, of which AEP owns a 26% share, is expected to be retired by June 2018.
AEP CEO Nick Akins made reference to the swap during the company’s April 27 earnings call with financial analysts when he said, “We continue to explore our strategic alternatives with [Conesville and Cardinal] and, in the case of Cardinal, seeking ways to enable a more modern and efficient relationship … as we explore our strategic alternatives in parallel.”
AEP created its competitive generation company, AEP Generation Resources, in early 2014 after separating its distribution and transmission operations in Ohio from its AEP Ohio-owned generation assets.
— Tom Kleckner
