American Electric Power (AEP), Dynegy (DYN) to Transfer Ownership Of Co-owned Power Plants
- Nasdaq tumbles 2% on weak data, surging bond yields
- Ford (F) Stock Soars on $11.4 Billion EV Partnership with Battery Maker SK Innovation (SKOVF)
- Brent oil near $80 a barrel on tighter supplies
- Piper Sandler Raises Estimates on Tesla (TSLA) Ahead of 'Best-Ever Quarter' in Q3
- Buy-the-dip Mentality Continues to Dominate, Last Week's $5.9 Billion Stock Inflows Were Fourth Largest Since 2008 - BofA
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
American Electric Power (NYSE: AEP) today signed agreements to sell AEP's 330-megawatt (MW) share of the Zimmer Plant to Dynegy (NYSE: DYN) and to purchase Dynegy's 312-MW share of Conesville Plant. AEP and Dynegy co-own both plants.
"AEP's long-term strategy has been to become a fully regulated, premium energy company focused on investments in infrastructure and energy innovations that benefit our customers. These transactions simplify the ownership structures for two of our remaining competitive generation assets as we continue the strategic evaluation to determine the future for those power plants," said Nicholas K. Akins, AEP chairman, president and chief executive officer.
The transactions are expected to close in the second quarter of 2017, subject to regulatory approval from the Federal Energy Regulatory Commission, and will not have a material impact on AEP earnings.
There will be no employment impact from the ownership transfers as AEP already operates Conesville Plant and Dynegy operates Zimmer Plant.
AEP currently owns 2,725 MW of competitive generation in Ohio. After the transaction is complete, AEP would own 92 percent, or 1,461 MW, of Conesville Plant; 595 MW of Cardinal Plant; 603 MW of Stuart Plant and the 48 MW Racine Plant. Dayton Power & Light owns the remaining 129 MW of Conesville Unit 4.
American Electric Power is one of the largest electric utilities in the United States, delivering electricity and custom energy solutions to nearly 5.4 million customers in 11 states. AEP owns the nation's largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP also operates 224,000 miles of distribution lines. AEP ranks among the nation's largest generators of electricity, owning approximately 26,000 megawatts of generating capacity in the U.S. AEP supplies 3,200 megawatts of renewable energy to customers. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Taboola (TBLA) Updates Third Quarter and Full Year 2021 Guidance, Releasing Initial 2022 Guidance
- NovaBay Pharma (NBY) to Acquire DERMAdoctor for $15M
- Shore Bancshares (SHBI) Receives Regulatory Approvals to Acquire Severn Bancorp, Inc.
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions, Spinoffs
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!