AEP outlines its strategic plans for its Kentucky-based subsidiaries
American Electric Power (AEP) outlined its commitment and strategic plans for two of its Kentucky subsidiaries, Kentucky Power and AEP Kentucky Transco.
This follows recently announced plans by AEP to terminate the sale of its Kentucky operations to Liberty, a subsidiary of Algonquin Power & Utilities Corp.
“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,” AEP President and CEO Julie Sloat said. “We believe there are opportunities ahead for our Kentucky operations, and we will focus our efforts on economic development, reliability, and controlling cost impacts to customers. Our team is eager to get to work implementing a refreshed long-term strategy that maximizes the full potential of our Kentucky operations – not just for AEP, but for the communities we serve.”
For starters, AEP is filing a base rate case in Kentucky in June with a six-month expected commission approval process. The new rates will take effect in January 2024. AEP said it is “right-sizing” its rate base to better meet the region’s needs and address costs while providing reliable service. This includes securitizing retired coal assets through the Kentucky commission’s approval to reduce customer rates.
Further, the company believes that leveraging Kentucky’s manufacturing talent will help attract onshoring and restoring, strengthening the regional economy and attracting new investment.
In addition, AEP named Cindy Wiseman as Kentucky Power’s president and chief operating officer. Wiseman’s experience overseeing customer service, economic development, and government affairs positions her well to redefine the company moving forward.
