$2.8 billion sale of Eastern Kentucky power company will not go forward
The previously announced sale of Kentucky Power, the utility company that serves a large portion of Eastern Kentucky, has been canceled, the company announced Monday.
In December 2021, American Electric Power, the parent company of Kentucky Power, announced that it was selling the Kentucky utility to another energy company, Liberty Utilities. After receiving the necessary in-state approval of the deal last year, the companies haven’t been able to get go-ahead from federal regulators. AEP and Liberty agreed to terminate the deal Monday.
Kentucky Power customers are essentially unaffected by the canceled sale, the company said in a press release announcing the termination of the deal. No account, billing or payment information will change. The Ashland-based utility serves about 165,000 customers across 20 counties.
“As a partner in Eastern Kentucky for more than 100 years, we’re renewing our focus on bringing opportunities to the region and supporting the communities we serve. We are working diligently to reimagine our strategy with the goal of not just supporting Kentucky but being an essential part of its economic and energy future,” said Julie Sloat, AEP president and chief executive officer, in a press release.
In April 2022, Attorney General Daniel Cameron’s office and some Eastern Kentucky legislators opposed the proposed $2.8 billion deal, arguing the sale would do little to ease high electricity rates.
A month later, Kentucky’s Public Service Commission — the body which regulates utilities in the state — approved the sale, but only with modifications to the deal.
However, federal regulators with the Federal Energy Regulatory Commission, or FERC, declined to approve the sale in December. According to the commission, the sales’ parties did not provide enough evidence to show the deal wouldn’t have an adverse effect on rate payers.
The FERC denial was a rare one. Over the past decade, the commission had only declined approval for five of the nearly 2,000 similar such cases, Willie L. Philipps, the FERC Commissioner, wrote in the commission’s denial.
AEP and Liberty reapplied for FERC approval of the deal in February but a final decision had not been made in the case.
Going forward, Kentucky Power will focus on bringing economic development to the region while also “ensuring rates meet the region’s needs and address costs while providing reliable service to customers,” the company said.
Cindy Wiseman also was named company president and chief operating officer — a role she had served in on an interim basis, according to the news release.