AEP Generation Resources concludes sale of Racine hydroelectric plant to Eagle Creek
American Electric Power completed its sale of Ohio’s 48 MW Racine Plant, a hydroelectric facility owned by AEP Generation Resources, to Eagle Creek Renewable Energy on Dec. 30, 2021.
While the sale had been announced back in February last year, it was not until December that it was approved by the Federal Energy Regulatory Commission (FERC). This represented a major delay, as AEP had originally expected to close in the second quarter of 2021. Nevertheless, the closing represents another lightening of AEP Generation Resources’ portfolio, which is now down to the single 595 MW Cardinal Plant Unit 1. Even that is slated for retirement in 2028.
The move is part of a larger effort on behalf of AEP to leave the competitive generation business and focus instead on regulated business operations, infrastructure, and energy innovations.
“The sale of Racine Plant is part of our ongoing strategic evaluation of our generating assets as we focus on our regulated business operations and invest in the infrastructure and energy innovations that bring value to our customers,” Nicholas Akins, AEP chairman, president and CEO, said in February 2021. “We continue to add new emission-free energy both in our regulated states and through contracted renewable projects that fit with our overall strategy and portfolio.”
AEP intends to continue growing its renewable generation operations and reach net zero CO2 emissions by 2050 across its family of companies. Meanwhile, for Eagle Creek, Racine represents another hydroelectric addition for a portfolio that includes dozens of similar facilities across the country.
Owing to the competitive nature of this sale, the sale price was not publicly released.
