AEP subsidiary to buy Louisiana cooperative
SHREVEPORT, LOUISIANA - A subsidiary of power generator American Electric Power plans to buy a Louisiana electric cooperative for $94 million in a deal expected to save the cooperative's members 20 percent a year on their electricity bills.
Southwestern Electric Power Co. said that the 30,000 members of Valley Electric Membership Corp. will receive $30 million for their stake in the cooperative should the deal be approved. Members likely will vote early next year to dissolve the cooperative.
The cooperative's members are located south of Shreveport. The deal will double the size of Southwestern Electric's geographic footprint in Louisiana and bring economic opportunities along Interstate 49.
The utility has nearly 500,000 customers in Louisiana, Texas and Arkansas.
Related News
EVs could drive 38% rise in US electricity demand, DOE lab finds
WASHINGTON - Utilities have struggled with flat demand for years, but analysis by the National Renewable Energy Laboratory predicts steady growth across the next three decades — largely driven by the adoption of electric vehicles.
The study considers three scenarios, a reference case and medium- and high-adoption electrification predictions. All indicate demand growth, but in the medium and high scenarios for 2050, U.S. electricity consumption increases by 20% and 38%, respectively, compared to business as usual.
Utilities could go from stagnant demand to compound annual growth rates of 1.6%, which would amount to sustained absolute growth of 80 terawatt-hours per year.
"This unprecedented…
