Kentucky Power to be sold pending regulatory approval
HAZARD, Ky. (WYMT) - American Electric Power (AEP) entered into an agreement to sell its Kentucky operations, including Kentucky Power and AEP Kentucky Transco to Liberty Utilities.
Liberty is a subsidiary of Algonquin Power & Utilities Corp. and the sale, expected to close in the summer of 2022, is worth $2.846 billion enterprise value.
“Kentucky Power and its employees are an important part of the communities in eastern Kentucky, and I am grateful for their valuable contributions to AEP,” said Nicholas K. Akins, AEP chairman, president and chief executive officer. “Liberty’s commitment to safety and operational excellence will allow Kentucky Power employees to continue their critical work producing and delivering reliable power for customers and communities. At the same time, the sale will strengthen AEP’s ability to invest in projects that will support a resilient, cleaner energy system.”
Founded in 1919 and headquartered in Ashland, Kentucky Power serves approximately 165,000 electricity customers in 20 eastern Kentucky counties. AEP Kentucky Transco is a regulated transmission business with assets exclusively in Kentucky.
The sale directly impacts 360 employees in Kentucky. All will transfer to Liberty pending approval of the sale.
”With that level of experience and expertise already here and in place there should be a pretty seamless transition,” said Cynthia Wiseman, the VP of External Affairs and Customer Service at Kentucky Power.
“We’ve been proud to serve Kentucky Power customers for more than a century, and the commitment of our employees will remain strong throughout this transition and beyond,” said Brett Mattison, Kentucky Power president and chief operating officer. “We are working closely with Liberty to ensure a seamless transition for our customers and communities. Through their focus on safety, reliability, customer service and sustainability, Liberty is well-positioned to serve Kentucky customers. The same skilled and experienced employees who work to keep the lights on for our customers will continue to do so as part of Liberty.”
”There’s an adjustment period here of people getting used to the information, but we are continuing to provide power to the 165,000 customers that serve Eastern Kentucky,” added Wiseman.
Liberty provides regulated electricity, natural gas, water and wastewater services to more than 1 million customer connections, mainly in 13 U.S. states and Canada.
The Kentucky Public Service Commission and the Federal Energy Regulatory Commission must approve the sale. The transaction is subject to federal clearance pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and clearance from the Committee on Foreign Investment in the United States.
AEP announced in April 2021 that the company was conducting a strategic review of its Kentucky operations, including a potential sale, and held a competitive process as part of the review.
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