"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 CEO.
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.