Kentucky Power sale approved by Public Service Commission

The utility company is being sold to Liberty Utilities, Inc.

FRANKFORT, Ky. (WTVQ) – The Kentucky Public Service Commission (PSC) on Wednesday approved the sale of Kentucky Power from American Electric Power to Liberty Utilities, Inc., according to the PSC.

The sale price is more than $2.8 billion, which includes Liberty Utilities taking on more than $1.2 billion in debt.

American Electric Power is set to net $1.4 billion in cash after taxes and fees.  The company has indicated it plans to re-invest in renewable energy in other subsidiaries.

Liberty Utilities told the PSC it plans to retain all the Kentucky Power employees at the same or similar pay and benefits and provide 100 new jobs in Kentucky Power’s service territory.

The headquarters will remain in Ashland.  Liberty Utilities says it will not file a rate case to raise customer’s rates until January 2024.

As part of the deal, the PSC ordered $143 million in benefits to be returned to Kentucky Power rate payers.  Customers will begin seeing a bill credit in July that will continue  for 18-months.

The PSC reduced transmission costs for ratepayers by $30 million and ensured ratepayers don’t pay for more than $43 million in damage repairs from last year’s winter storms.  The commission also secured $40 million in Fuel Adjustment Credits for ratepayers and required Kentucky Power to pay half of the charges on the Big Sandy Decommissioning Rider.  Kentucky Power owns and operates the Big Sandy Natural Gas Plant in Lawrence County.

Kentucky Power serves approximately 165,000 customers in 20 counties across eastern Kentucky.

Kentucky Power released the following statement about the sale:

“The order from the KPSC affirms that Liberty’s ownership of Kentucky Power is the best path forward for customers, communities and employees. This is a significant step in completing the transaction by second quarter 2022 to ensure that customer benefits associated with Liberty’s commitments to customers and supporting economic growth in eastern Kentucky are realized. AEP is reviewing the details of the order and the additional conditions it contains. Additional regulatory approvals from the Federal Energy Regulatory Commission and the Public Service Commission of West Virginia are expected in the near future to allow the sale to be finalized by second quarter 2022 and the related benefits for customers to begin.”

Cynthia Wiseman, Vice President-External Affairs and Customer Service

 

To view the news release on the sale from the PSC, CLICK HERE.

 

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