Dive Brief:
- AEP Ohio has spun off its power plants totaling about 11,200 MW into newly formed AEP Generation Resources.
- AEP Ohio, owned by American Electric Power, received the final approval for the spin off in late December.
- AEP Ohio's 867-MW stake in the John Amos plant was transferred to Appalachian Power. The utility's 800-MW share of the Mitchell plant was transferred to Kentucky Power. Unregulated AEP Generation Resources will own about 8,700 MW after expected power plant retirements that are set to occur through 2015.
Dive Insight:
The move marks a continued shift for AEP Ohio away from owning its own power plants. Ultimately AEP may sell the power plants depending on how the wholesale market shakes out. Meanwhile, AEP Ohio will hold four auctions this year for wholesale power to supply its retail customers.
