AEP receives approval to transfer Amos Plant ownership to Appalachian Power

AEP Plant Transfers face mixed regulatory outcomes as Virginia SCC approves Amos Unit 3 to Appalachian Power but denies Mitchell capacity; affecting Wheeling Power merger, WV PSC review, KY PSC settlement, resources, and cost-based rates.

COLUMBUS, Ohio – American Electric Power recently received approval from the Virginia State Corporation Commission SCC to transfer the AEP Ohio-owned portion of John E. Amos Plant Unit 3 to Appalachian Power. The Virginia SCC also approved the merger of Wheeling Power with Appalachian Power, but denied transfer of 50 percent of the 1,600-megawatt MW Mitchell Plant to Appalachian Power.

“We are pleased that the Virginia Commission approved transfer of the AEP Ohio-owned portion of Amos Plant to Appalachian Power, but the decision to deny the transfer of half of the Mitchell Plant’s generating capacity is disappointing. Although the Virginia Commission approved the merger of Wheeling Power with Appalachian Power, denial of the Mitchell Plant ownership transfer is a complicating factor because there will be insufficient generation resources to serve the merged company. AEP intends to bring this matter to the attention of the parties and the Public Service Commission of West Virginia in the asset transfer case and may re-evaluate the merger,” said Nicholas K. Akins, AEP president and chief executive officer.

If the Wheeling Power and Appalachian Power merger does not proceed, our corporate separation order from the Federal Energy Regulatory Commission would allow the transfer of Wheeling Power’s existing power purchase agreement with AEP Ohio to AEP Generation Resources to serve those customers at cost-based rates. This would protect Wheeling Power customers by continuing their existing source of generation supply while similar transmission initiatives like the Transource transmission project advance elsewhere,” Akins said.

AEP filed in December 2012 for approval from the Virginia SCC and the Public Service Commission of West Virginia to transfer AEP Ohio’s two-thirds ownership 867 MW of Amos Plant Unit 3 1,300 MW and 800 MW of the 1,600-MW generating capacity of Mitchell Plant to Appalachian Power amid coal plant line disputes that have delayed projects elsewhere. Approval from the Public Service Commission of West Virginia still is necessary to complete the transfer of Amos Plant Unit 3 to Appalachian Power.

AEP also filed to transfer ownership of the remaining 800 MW of the 1,600-MW generating capacity of Mitchell Plant to Kentucky Power. A settlement agreement approving that transfer was reached with several parties in the case as debates over TrAIL power transmission continue regionally. A decision on the settlement agreement is pending before the Kentucky Public Service Commission.

“We will continue to work with regulators in West Virginia and Kentucky to seek the additional approvals necessary to transfer the AEP Ohio-owned share of the Amos Plant to Appalachian Power, including planned Cabell power grid upgrades, and to transfer 800 megawatts of Mitchell Plant to Kentucky Power to help satisfy their existing and long-term generation requirements,” Akins said.

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