Dive Brief:

• American Electric Power's Ohio generation could soon be on the auction block reports Columbus Business First, as the company's CEO has confirmed market and regulatory uncertainty have shifted the plants' economics.
• AEP hired Goldman Sachs in January to help manage its exit from the Ohio market, the news outlet reported.
• The company has been seeking deals to guarantee income from older coal facilities, but in February Ohio regulators determined the deal was not in the best interest of consumers.

Dive Insight:

CEO Nick Atkins confirmed at an annual shareholder meeting that the company is leaning toward disposing of its unregulated generation in Ohio. According to Columbus Business First, Atkins said "at this point, looking at it, you would have to lean toward that direction because there clearly is volatility in that business and it’s very difficult to invest."

In February, the Public Utilities Commission of Ohio rejected a proposal which would have guaranteed income from older coal facilities in the state. Regulators determined the proposal was legal, but not in the best interest of ratepayers.

According to Atkins, current regulations make long-term investment decisions difficult. It was in early 2014 when AEP completed the spinoff of its Ohio power plants, totaling about 11,200 MW into newly formed AEP Generation Resources.

Opponents of AEP's plan to continue operating Ohio coal facilities say the so-called "bailouts" would slow the transition to a cleaner generation mix.