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American Electric Power
yesterday received approval from the Virginia State Corporation
Commission (SCC) to transfer the AEP Ohio-owned portion of John E. Amos Plant
Unit 3 to Appalachian Power. The Virginia SCC also approved the merger of
Wheeling Power with Appalachian Power, but denied transfer of 50 percent of
the 1,600-megawatt (MW) Mitchell Plant to Appalachian Power.
"We are pleased that the Virginia Commission approved transfer of the AEP
Ohio-owned portion of Amos Plant to Appalachian Power, but the decision to
deny the transfer of half of the Mitchell Plant's generating capacity is
disappointing. Although the Virginia Commission approved the merger of
Wheeling Power with Appalachian Power, denial of the Mitchell Plant ownership
transfer is a complicating factor because there will be insufficient
generation resources to serve the merged company. AEP intends to bring this
matter to the attention of the parties and the Public Service Commission of
West Virginia in the asset transfer case and may re-evaluate the merger," said
Nicholas K. Akins, AEP president and chief executive officer.
"If the Wheeling Power and Appalachian Power merger does not proceed, our
corporate separation order from the Federal Energy Regulatory Commission would
allow the transfer of Wheeling Power's existing power purchase agreement with
AEP Ohio to AEP Generation Resources to serve those customers at cost-based
rates. This would protect Wheeling Power customers by continuing their
existing source of generation supply," Akins said.
AEP filed in December 2012 for approval from the Virginia SCC and the Public
Service Commission of West Virginia to transfer AEP Ohio's two-thirds
ownership (867 MW) of Amos Plant Unit 3 (1,300 MW) and 800 MW of the 1,600-MW
generating capacity of Mitchell Plant to Appalachian Power. Approval from the
Public Service Commission of West Virginia still is necessary to complete the
transfer of Amos Plant Unit 3 to Appalachian Power.
AEP also filed to transfer ownership of the remaining 800 MW of the 1,600-MW
generating capacity of Mitchell Plant to Kentucky Power. A settlement
agreement approving that transfer was reached with several parties in the
case. A decision on the settlement agreement is pending before the Kentucky
Public Service Commission.
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